The bank that sued to force the appointment of a receiver to run the troubled Prichard Water Works & Sewer Board has expressed dissatisfaction with a draft master plan produced by that expert.
Synovus Bank, which services the bonds sold by the Prichard Water Works & Sewer Board, has expressed dissatisfaction with draft master plan produced by the court-appointed receiver running the troubled utility.Synovus Bank, which services that $55.78 million in bonds that the water system sold to investors in 2019, wrote in a court filing that the plan produced by John S. Young Jr.
“To date, the Trustee has exercised significant patience to allow the Receiver to stabilize the System and has not exercised any additional remedies to which the Trustee is entitled under the Indenture,” the bank’s lawyers wrote. “In so doing, the Trustee has contributed to the Receiver’s ability to pursue the objective of stabilizing the System and seeking alternative options for the ownership, governance, operations, and source of supply for the System over the long-term.
“As currently constructed, the Draft Master Plan does not contain sufficient information or deadlines regarding when debt service payments may begin again, when the long-term solution for payment of the bonds will be determined, or how operating expenses and capital expenditures will be funded – whether by government grants or otherwise – during the bridge period to when a particular path forward for the System is chosen,” the filing states.
Young could not immediately be reached for comment Thursday. He has told FOX10 News that he stopped making debt payments because he had to prioritize more critical needs, including the health and safety of customers. He said he has worked hard to attract state grants and put together a long-term plan to repair leaks in the system, which he added will reduce operating costs and free up money to repay the borrowed money.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Chairman of Prichard Water Works and Sewer Board diesThe Prichard Water Works and Sewer Board today announced the death of its chairman, Russell Heidelburg.
Read more »
Mobile County Sheriff and Prichard Police fed up with senseless gun violence in PrichardThe Mobile County Sheriff and Prichard Police are fed up after three shootings happened in Prichard early Wednesday morning.One of those shootings claimed the l
Read more »
Chairman of Prichard Water Board, Russell Heidelburg, has passed awayRussell Heidelburg, the Charmain of the Water Works and Sewer Board of Prichard, has passed away, according to a statement released for the board.“Mr. Russell H
Read more »
Independent study of Prichard Water recommends MAWSS take over troubled systemMoonshot Missions, an independent contractor hired by John Young to evaluate the Prichard Water System, has recommended that Mobile Area Water and Sewer take ov
Read more »
Court-appointed receiver endorses MAWSS takeover of Prichard water systemThe court-appointed expert tapped to turn around the troubled water and sewer system in Prichard and Chicasaw formally recommended Wednesday that the Mobile Area Water and Sewer System take it over.
Read more »
Prichard water system has stopped paying investors, receiver saysThe water system that serves Chickasaw and Prichard has stopped making debt payments on more than $55 million that the utility borrowed, according to the man appointed by a judge to oversee the troubled utility.
Read more »