Nevada Transit Group Looks to File Bankruptcy
Facing a lawsuit, the South Tahoe Area Transit Authority is looking for Chapter 11 protection.
A Nevada transportation board voted recently to file bankruptcy as it faces millions of dollars in unpaid debt.
The South Tahoe Area Transit Authority will file for Chapter 11 protection as it faces a lawsuit from one of its creditors, MV Transportation. The transportation group owes the latter around $3 million.
As a result of the lawsuit, the STATA has had $670,000 in assets frozen and hopes to have access to the funds through filing bankruptcy.
"They really need that money if they have a chance of sustaining their operation," Mike McLaughlin, an attorney for STATA, told the Tahoe Daily Tribune.
The BlueGO transportation service is run by the STATA and provides service to the region located south of Lake Tahoe. Another report from the Daily Tribune noted that the group looked to reduce some of its routes in order to help make up for a budget gap.
While organizations in Nevada are facing financial difficulties, so are its residents. The state posted the highest rate of foreclosure in the country for the 43rd consecutive month in July.
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