Housatonic Water Works needs to request refuge in bankruptcy court
To the editor: No a single uncertainties that Housatonic Drinking water Works wishes it could
To the editor:
No a single uncertainties that Housatonic Drinking water Works wishes it could present Housatonic people with the clear water they have earned. The impediment – the reason for all the sediment – is that HWW does not have the $31 million a current report established is necessary to overhaul its process. HWW finds alone between heaps of rocks and a hard put – the DPU will not permit a rate maximize on HWW’s 850 shoppers substantial enough to spend for repairs, still the lending markets will not lend without having burdensome price boosts. At this point, HWW requirements to choose a web site out of Flint, Michigan’s and PG&E’s bankruptcy playbooks to resolve as a result of the individual bankruptcy court docket what it are not able to do exterior of it.
Flint, delivering water, and PG&E, providing electric power and gas, the two filed for personal bankruptcy reorganization when the fees to deal with their utility techniques vastly exceeded their level-based mostly ability to shell out. Simply because a personal bankruptcy court docket get supersedes a DPU charge purchase, a individual bankruptcy court judge can empower a trustee to guideline and borrow HWW out of this mess. An insolvent HWW cannot borrow the cash necessary to correct the process, but a trustee can borrow prolonged term (at existing small charges) to deal with the complications now.
HWW’s liabilities exceed its assets by about $25.2 million. That checks the first bankruptcy box. If HWW will not voluntarily go after personal bankruptcy, Fantastic Barrington and other HWW creditors can jointly bring about HWW to involuntarily file for individual bankruptcy. That is the next box. The previous box is willingness to progress in personal bankruptcy court docket. The Selectboard and Housatonic residents either have to have to persuade HWW to file for bankruptcy, or HWW’s collectors alongside one another with the Selectboard and Housatonic residents will need to have to make the choice for it. The issue is no lengthier no matter if HWW is bankrupt. It is just a issue of when HWW, or Good Barrington, acknowledges the simple fact and works by using it to Housatonic residents’ gain.
Peter J. Most
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