Bankruptcy Law

Arkansas City Files for Bankruptcy Protection, First Since 2015

May 28, 2019, 12:15 AM

Perla, Arkansas, filed for bankruptcy protection on Sunday, becoming the first U.S. municipality to do so since 2015.

The city filed for Chapter 9 protection in the U.S. Bankruptcy Court for the Western District of Arkansas on May 26, according to the petition. The city listed its liabilities as being between $100,001 and $500,000 and assets as being between $1 million and $10 million.

The city’s lawyer, Kyle Havner, declined to comment when reached by phone on Monday morning.

Perla, which is located about 44 miles (70 kilometers) from Little Rock, had a population of about 245 people in 2018,...

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