Oct 10, 2003

Water Authority Considers Filing for Bankruptcy

The South Brunswick, N.C. Water and Sewer Authority is considering filing for bankruptcy as an option to handle its more than $4 million debt as it receives pressure from the N.C. Department of State Treasurer to get its finances in order, according to a report in the Sun News.
The authority has been directed to take several actions, including:
Finalize a contract with the county government to run its wastewater plant;
Eliminate administrative positions and expenses; and
Sell land on Old Georgetown Road to pay outstanding revenue bond debt.
The Local Government Commission also has put the authority on notice that it may condemn the authority's books and records and assume full control of its finances if the authority defaults on any of its debts.
The authority also plans to withdraw its stormwater permit for a proposed wastewater treatment plant that was to be the basis for a regional sewer system in southern Brunswick County.
Without the permit, any new sewer system that would be constructed and provided by Brunswick County would have to fall under a county permit.