PRICHARD, Ala. (WKRG) — Synovus Bank has filed a lawsuit against the Prichard Water Works and Sewer Board Thursday, according to court documents. The bank is asking the court to appoint a receiver over the system.
According to Synovus Bank, the board issued $55.78 million in bonds for improvements to the city’s water and sanitary system in 2019. A balance of $54.23 million in Series 2019 Bonds is unpaid by the board, according to the lawsuit. The lawsuit also claims the water board has breached its contract with the bank.
The lawsuit alleges that PWWSB is suffering from gross mismanagement, lack of fiscal integrity and endangering public safety by “failing to maintain viral system infrastructure.”
A hearing is scheduled for July 13.