
Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Author: Joel R. Glucksman
Date: September 7, 2015
Partner
201-896-7095 jglucksman@sh-law.comIn court documents, the town noted that it had sought bankruptcy protection following an $11.4 million jury verdict, which was approximately four times the town’s budget.
The small town – with a population of 8,000 – recently lost an appeal from an $11.4 million verdict in a 2012 legal dispute with Truck America Training School. This forced the town into insolvency because its annual budget is only $3 million. Moreover, the bankruptcy filing will stop interest of $3,700 a day from being applied, which would have increased the liability to $15 million.
In the verdict, the judge found that Hillview was responsible for losses incurred by Truck America due to a dispute over the contract with the town for a 40-acre location. According to the Courier-Journal, the school attempted to expand its training operations to incorporate heavy equipment training at the new location, but the town attempted to evict Truck America for a failure to make contractually-required lease payments. Throughout the dispute, Truck America Training was forced to sell off equipment and lay off several employees to remain operational.
The company also claimed to have made several settlement offers to Hillview, which included a proposal for the town to pay $6.2 million, with $5.2 million upfront and $1 million to be paid at a later date. However, according to a report in The State, the town rejected the settlement stating that it could not afford any payment agreement. The town then elected to file for Chapter 9 bankruptcy protection.
In court documents, Hillview officials listed estimated liabilities between $50 million to $100 million, with assets between $1 million and $10 million.
As required under its Chapter 9 protection filing, Hillview is currently seeking to resolve its financial problems by refinancing its municipal budget. The filing will provide Hillview with relief from its debts by creating a restructuring plan to reach a payment agreement with creditors, subject to the bankruptcy court’s approval. In the interim, the town has taken initial steps to pay down the judgment by earmarking $100,000 in its budget for 2016.
The town’s decision to file for Chapter 9 bankruptcy protection was also due in part to various outstanding creditors in addition to Truck American. However, according to town officials, municipal services will remain operational during the bankruptcy period.
This marks the second time in five years that Hillview has sold bonds, as it issued $1.4 million of general-obligation debt in 2010. Although from a broader perspective, this continues a trend of municipalities filing for Chapter 9 bankruptcy protection since the financial crisis in 2007.
Hillview becomes the first city or town to file for bankruptcy protection since Detroit in 2013, and the third Chapter 9 filing of 2015, including a special district in California and a hospital in Oklahoma. This bring the number of towns and counties to file for Chapter 9 bankruptcy to 54 since 1980.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!