City Of Prichard Considers Bankruptcy

Prichard City officials say a mounting budget problem with the pension fund makes bankruptcy an option.

by Chad Petri

Published: Fri, October 09, 2009 - 4:20 pm CST Last Updated: Fri, October 09, 2009 - 4:33 pm CST

PRICHARD, Alabama - If city officials go through with it, this would be the second time Prichard has filed for bankruptcy.

“I think it's a game, part of it at least is a game in terms of the timing,” says Robert Hedge. He’s the lawyer for the more than 50 retirees suing the city over their pensions. Hedge says a bankruptcy filing would put their lawsuit on hold.

“Delay is always advantageous to the defendant, my goal is to move forward and push and that's my plan,” says Hedge. City officials declined requests for an interview because they say the pending lawsuit over the pension fund prevents them from commenting. Retirees like Mary Berg don't have time to wait for answers. She says she hasn't received the money she needs to help pay her mortgage.

“Because this is the ninth day without a check, I do have another job but I have other obligations that the money is already bound to,” says Berg. Mayor Ron Davis was not in the office today, 10/9/09, but a city spokesman says the bankruptcy option is being considered because of the pension fund issue. The retiree's attorney says it's only delaying the inevitable.

“They paid into the pension for some 20 years once they retired, the promise was the city would honor its obligation,” says Hedge. A small group of retirees says they will continue attending Prichard City Council and finance committee meetings to voice their concerns until the pension issue is resolved.

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Alabama Patriot Says:

Sat, Oct 10, 2009 at 4:50 pm

This is a cheap tactic on the part of the mayor and city council of Prichard to get out of paying the pensioners anything at all. The people that were in custody of the pensioners’ money took it and spent it illegally and they should be brought up on charges of grand theft. If Mobile took over the city, maybe the mayor and city council of Mobile could turn the area around and make it profitable, who really knows? The current residents of Prichard should contact the governor and the attorney general’s offices in order to see about dissolving the city and bringing charges against the current leadership. JMO

cissiebee Says:

Sat, Oct 10, 2009 at 4:34 pm

When the rednecks get their race track in prichard, everybody in prichard will move out anyway.