For-profit entities may now bid on Chester’s water systems, but whoever wins the high bid must keep the water systems in public hands, writes Kathleen E. Carey for the Daily Times.
That’s the essence of an Oct. 8 bankruptcy hearing settlement worked out between Chester Receiver Vjay Kapoor and the Official Committee of Retired Employees of the City of Chester.
“We are unwavering in our commitment to keep these assets under the control of an entity that is answerable to public and not to stockholders,” Kapoor said.
A plan to lift Chester out of its three-year bankruptcy involved selling the Chester Water Authority, DELCORA and the Stormwater Authority of Chester.
A condition of the plan was that private for-profit companies could not bid on the water assets.
In June, the Official Committee of Retired Employees of the City of Chester filed a complaint against the receiver so that private companies could bid and own the assets.
The retirees wanted private entities to also bid to generate the highest bid amount possible.
The settlement also moved the deadline for bids from Nov. 2 to Feb. 2.
Read more about the settlement and ongoing legal issues with Chester’s water assets in the Daily Times.
The former Chester Receiver Michael Doweary, and Chester Mayor Stefan Roots describe a Plan of Adjustment to lift Chester out of bankruptcy.
