“That ended up in a contract dispute, the property was not transferred, there’s a question about whether payments were made or not made, it ended up in circuit court and ended up with a jury verdict against the city for 11.4 million dollars”, said Baker.
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In a press release on Thursday, the city said it does not have the money to pay the judgment and will file for bankruptcy to pay the expense. WDRB reports that Hillview is the first U.S. city to file for bankruptcy since Detroit in 2013.
The town got huge debts after a trial with the Truck America Training company over a land sale.
Truck America Training, in Shepherdsville, won the judgment against the city, which appealed the decision but the Kentucky Supreme Court ruled in favor of Truck America Training. Hillview had $960,713 in cash at the end of the 2014 fiscal year.
The town assets make up $10 million, while liabilities are as high as $100 million.
The Kentucky League of Cities says it’s not aware of another bankruptcy filing by a Kentucky city.
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The Hillview City Council voted 6-0 to file bankruptcy at a meeting August 17, deciding that a court-ordered reorganization “would be in the best interests of the City, its creditors, and most importantly, its citizens”, according to a resolution included with the filing.
