A federal bankruptcy court has been asked to withdraw Chester’s bankruptcy recovery plan filed in August 2024 by former receiver Michael Doweary.
The request came from Chester’s current receiver, Vijay Kapoor, in light of a Pennsylvania Supreme Court ruling in January, writes Kathleen E. Carey for the Daily Times.
A new plan will be filed, according to a statement from the receiver’s office.
The 2024 plan to fix Chester’s bankruptcy included monetizing the water, stormwater, and sewer systems in the city to raise revenue. It stipulated that the water system sales could only take place if the assets remained in public hands.
The Chester Water Authority legally challenged the plan.
In January 2026, the state Supreme Court ruled that decisions regarding the Authority’s assets had to be made by representatives of the city as well as Delaware and Chester counties, since the water authority offers service to all three.
Chester Water Authority solicitor Francis Catania said Receiver Vijay Kapoor has focused too much on selling the Chester Water Authority assets as Chester’s solution out of bankruptcy.
“Selling the Chester Water Authority doesn’t solve the problems,” Catania said. “It transfers the problems from the government to the ratepayers.”
Read more about the ongoing dispute over selling Chester’s water assets in the Daily Times.
