Nebraska District Files for Chapter 9 Bankruptcy Protection

Sept. 20, 2024, 2:26 PM UTC

A sanitary and improvement district in Douglas County, Nebraska, filed for bankruptcy protection in the US Bankruptcy Court for the District of Nebraska on Thursday, marking a rare Chapter 9 filing.

  • Sanitary and Improvement District No. 542 is located in the county home to Omaha
  • Sanitary and improvement districts are created to provide services to new real estate developments, according to Douglas County
    • They can issue debt backed by revenue from property taxes
  • The district filed for bankruptcy after development in the area didn’t materialize, said Mark LaPuzza, a lawyer for the district
  • In the court filing, the district listed ...





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