The lawsuit was filed by a Bullitt County truck driving school in March 2005 over a property dispute.
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Hillview estimated its liabilities as high as $100 million and assets as high as $10 million, according to the filing in U.S. Bankruptcy Court in Louisville.
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. City Attorney Tammy Baker said Friday that it stops interest from being applied to the multimillion-dollar judgment as city leaders look to resolve the town’s financial problems.
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. She says the city will continue to function as usual, and residents will not see any disruption in services like police and fire. The city’s annual budget is about $3 million.
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A small Kentucky town is about to join a rather unfortunate club by becoming one of the few municipalities to file for bankruptcy protection.
