Prichard Files For Bankruptcy

Wednesday 9:30 a.m.
Prichard Mayor Ron Davis released the following statement Wednesday morning:

“I have looked at every opportunity available to obtain money to help fund the retirement plan for the City of Prichard. After careful review of all of our options, bankruptcy protection seems to be the only solution left at this time. Over the past 50 years, the pension plan was amended by the Legislature more than fifteen times, and always the economic burden on the City was increased. This has been a long term problem that was unfortunately inherited by this administration. After several lawsuits filed by pensioners, it has forced us to come to this decision, one that will protect the city and its residents. I hope that a solution can soon be found that will be fair to all. As Mayor, it is my duty to make sure that the City of Prichard continues to move forward by providing essential municipal services and to operate for the benefit of its citizens.”

Tuesday 6:45 p.m.The city of Prichard's financial troubles have hit rock bottom.

Late Tuesday afternoon the city filed for bankruptcy protection in Mobile County Circuit Court. The petition, which was filed at 4:54 p.m., comes one day before Prichard Mayor Ron Davis and Finance Director Rex Williams were scheduled to be depositioned in an ongoing pension dispute.

Robert Hedge, who represents more than fifty retired city workers in a lawsuit filed in August, says Mayor Davis is "playing games." Hedge says under the bankruptcy protection, the city gets an "automatic stay" on the pending litigation. "The whole thing is a creature of the Mayor," said Hedge. "This is not going to deter us."

Prichard city officials were not immediately available for comment.

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