In a recent government meeting, officials discussed the ongoing challenges related to two separate construction projects managed by De Lauder, which have both defaulted. The town is preparing to file a bond claim to recover costs associated with necessary repairs, but officials cautioned that the process may be complex and drawn out, akin to an insurance claim. The bond company will conduct a thorough review before any funds are disbursed, and there is concern about the potential for receiving less than expected.
Additionally, the discussion turned to the bankruptcy proceedings of De Lauder, which has filed for bankruptcy protection. The company has a long list of creditors, and the town's position as a creditor is not prioritized, as the bankruptcy court is primarily focused on paying employees and workers first. Officials noted that the town may need to consider hiring a bankruptcy expert to navigate the situation, which could involve significant upfront costs.
The meeting also addressed a memo regarding the George's on York Public Works agreement, which remains unresolved due to unmet conditions related to water allocation. Officials indicated that if no action is taken, an additional water allocation would be owed. However, if the town opts to amend the public works agreement, it could potentially avoid this obligation.
Looking ahead, officials plan to file the bond claim within the month and will reconvene in October to assess the situation and decide on further actions regarding the bankruptcy case. The next major hearing in the bankruptcy proceedings is scheduled for November, which will be crucial for determining the town's next steps.