Structured Solutions files for bankruptcy
by
Jordan Shefte
Story Created:
Jan 31, 2012 at 7:20 PM CDT
Story Updated:
Jan 31, 2012 at 7:44 PM CDT
The company Structured Solutions in Grand Island has been in the headlines for weeks. They were given $600,000 from the city. All they had to do was add two hundred jobs and create 50 new ones by the end of 2011.
They didn't meet either deadline, only creating six jobs.
So Grand Island City Council decided not to grant an extension to the company and, severed ties with Structured Solutions.
Last week, a new development to this continuing headache for the city appeared.
On January 24th, Structured Solutions filed for Chapter 7 bankruptcy.
For the city, this could mean that they don't see a cent of the $600,000 returned to them.
"It was clear that Structured Solutions was in serious financial trouble and it didn't terribly surprise me that bankruptcy was filed," said City Attorney Bob Sivick.
A Chapter 7 bankruptcy filing means that Structured Solutions won't be in existence any more, and that Grand Island could be facing a $600,000 loss.
"Basically, what Structured Solutions is asking the bankruptcy court to do is take all of it's assets, which I'm sure are minimal, liquidate them, or sell them, and use whatever assets, whatever proceeds from the sale of those assets to pay creditors," said Sivick.
While the outlook appears bleak, the city attorney is not ready to forfeit the money just yet.
"We're not quite ready yet to put up the white flag, but certainly our options are limited now that structured solutions has filed for bankruptcy," Sivick said.
The city council is chalking this up as a lesson learned.
"There are safeguards to how the LB-840 funds are distributed, and we didn't use those to the fullest and we will be more careful in the future," said council member Peg Gilbert.
Gilbert wanted to emphasize that while this LB 840 grant did not flush out, they have had sixteen or seventeen economic development projects that have been successful.
She said that the city must continue investing in economic development, regardless of this setback:
"That's the future of our community... we must."
Structured Solutions' list of assets and list of creditors are not due until February 7th and a meeting of creditors is scheduled for February 24th.
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