Settlement reached in Bay City State Theatre bankruptcy case

Bay Metropolis, Mi – A settlement has been reached in a federal chapter case between town, two native corporations and the trustee that characterize the Staatstheater.

The settlement, the quantity of which was not introduced, was reached by mediation, in line with the federal court docket reviews. A signed and written memorandum has been created, though it was not made publicly accessible.

The town commissioners of Bay are anticipated to vote on the situations of the settlement in the course of the assembly of Monday 16 June. The agenda will be considered on town web site here.

Bay Metropolis Supervisor Dana Muscott refused to touch upon the court docket case.

Associated: State Theater Chapter lawsuit focuses on Bay Metropolis, corporations

The lawsuit was introduced in December 2024, which emerged from the chapter case of Chapter 7 for the Staatstheater within the metropolis Downtown Bay.

The Trustee that the theater represents within the process centered on Bay Metropolis and two contractors, Clements Electrical Inc., and Serenus Johnson & Son Building Co. Inc.

It requested for a judgment of just about $ 1 million and claimed that town and the businesses – and never the theater – must be on the hook for loans to the theater that have been subsequently used to enhance the Wenonah Park Band Shell in 2020.

Claims within the lawsuit embrace that Clements Electrical and Serenus have been wrongly paid for his or her components within the Wenonah Park Band Shell Venture from funds of loans with the Bay County Development Alliance Inc. And the US Small Enterprise Administration.

The Trustee claimed that town knew that the theater mortgage funds used for the band Shell challenge and that it acquired a bonus of the theater due to his funds to contractors on the development of Wenonah Park.

The theater in July and August 2020 paid Clements Electrical greater than $ 35,000 for its share within the enhancements of the band Shell, in line with the court docket case.

In July and September 2020, Serenus was paid greater than $ 914,000 from the Staatstheater, the court docket case claimed.

Each funds got here from the proceeds from the Alliance and SBA loans, the court docket case claimed.

Would you like extra information in Bay Metropolis and Saginaaw-area? Make a bookmark of the native Bay Metropolis and Saginaw Information Web page or Register for the free “3@3” Daily newsletter For Bay Metropolis and Saginaw.

Do you need to subscribe to our Howdy, Bay Metropolis e-newsletter? Register here for free.