Federal Bankruptcy Judge Julie Manning on Thursday issued an order for an expedited hearing on September 19 regarding the motion by the communities of Bridgeport and Stratford to dismiss the bankruptcy application by management of the troubled Success Village co-op whose roughly 2,000 residents suffer from lack of heat and hot water.
Last Friday as Superior Court Judge Dale Radcliffe pondered a request to appoint a new management team, lawyers for Success Village operators rushed into federal court with an bankruptcy filing that automatically placed a hold on the state trial proceedings.
Lawyers for Bridgeport and Stratford assert residents require a new management team appointed by the court to address the long-standing heat and hot water concerns expressed by residents facing the cold weather season.
Municipal lawyers termed the bankruptcy filing a “bad faith litigation tactic” and stall effort adding pressure to the infrastructure issues.
Success Village Board Chair Ty Bird and the lawyer representing them Dennis Bradley say they want to control their own destiny. But state court testimony last week showed the Success Village bank account is empty with millions spent the past few years on lawyers and Success Village consultants.
Judge Manning’s ruling for hearing:
ORDER GRANTING MOTION TO SHORTEN TIME AND LIMIT
NOTICE ON MOTION TO DISMISS OR FOR RELIEF FROM
THE AUTOMATIC STAY AND SCHEDULING HEARING ON MOTION
On September 9, 2024, the City of Bridgeport (“Bridgeport”), the Town of Stratford (“Stratford,” and together with Bridgeport, the “Municipalities”), The Southern Connecticut Gas Company (“SCG”), and The United Illuminating Company (“UI,” and together with SCG, the “Utility Companies,” and the Utility Companies collectively with the Municipalities, the“Movants”), filed the ex parte Motion To Shorten Time of Hearing and To Limit Notice (the“Motion to Shorten Time and Limit Notice,” ECF No. 13) with respect to the Joint Motion of the City of Bridgeport, the Town of Stratford, The Southern Connecticut Gas Company, and The United Illuminating Company To Dismiss the Chapter 11 Case pursuant to 11 U.S.C. § 1112(b), or, in the alternative, Declaring the Automatic Stay Inapplicable to the Town of Stratford and City of Bridgeport’s Action or for Relief from the Automatic Stay (the “Joint Motion,” ECF No. 12). Pursuant to Fed. R. Bankr. P. 2002(m), it appearing that the relief sought in the Motion to Shorten Time and Limit Notice should be granted, it is hereby
ORDERED: A hearing on the Joint Motion shall be held on September 19, 2024 at 2:00 p.m. at the United States Bankruptcy Court, 915 Lafayette Boulevard, Bridgeport Connecticut; and it is further
ORDERED: At or before 5:00 p.m. on September 12, 2024, the Movants are directed to serve by this Court’s CM/ECF system if applicable, otherwise by in-hand delivery or overnight delivery service, a copy of this Order, the Joint Motion, and the proposed order granting the Joint Motion on (i) the Debtor; (ii) the Debtor’s counsel in this Chapter 11 case; (iii) the Debtor’s counsel in the Receivership Proceedings as defined in the Joint Motion; (iv) all appearing parties and scheduled creditors as of the date of the entry of this Order; and (v) the Office of the United States Trustee. Service upon artificial entities shall be with appropriate “attention lines” in accordance with Fed. R. Bankr. P. 7004(b)(3); and it is further
ORDERED: At or before 2:00 p.m. on September 13, 2024, the Movants shall file a Certificate of Service demonstrating compliance with this Order; and it is further ORDERED: At or before 2:00 p.m. on September 17, 2024, the Debtor shall file a Response to the Joint Motion…
