Wyatt Detention Center Files for Bankruptcy

Wyatt Detention Center Files for Bankruptcy

 

The Wyatt Detention Facility in Central Falls has filed for bankruptcy.

 

GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST

In a 16-page filing with the United States Bankruptcy District of Rhode Island, the Central Falls Detention Facility Corporation filed for Chapter 11.

 

Wyatt, in the filing, checked off a box for “estimated number of creditors” as being between 10,000 and 25,000.

 

They list their assets as being between “$100 million and $500 million” and claim their liabilities are the same amount.

 

Wyatt is being represented locally by Daniel Burgoyne and Matthew Lopes, Jr. with Patridge, Snow, and Hahn LLP.

 

The detention center has been a center of controversy for more than a decade due to financial and management issues.

 

 

In addition, the facility has been the focus of many civil rights and prisoner rights demonstrations.

 

According to a portion of an exhibit in the filing of a resolution of the board:

 

the Corporation presently does not have sufficient liquidity or net operating income to service its outstanding bond debt, (ii) the Corporation has negotiated in good faith with the Bond Trustee and the City of Central Falls to restructure its outstanding obligations to address these liquidity issues, (iii) following extensive negotiations, the parties have agreed to a restructuring of the Corporation’s obligations that substantially reduces the outstanding debt owed by the facility, (iv) the parties desire to implement this restructuring through a Chapter 11 proceeding, and have agreed to the essential elements of a Chapter 11 plan that accomplishes such restructuring, and (v) the proposed restructuring reduces the Corporation’s outstanding debt to a level that will permit regular debt service from the Corporation’s net operating income, and thereby allow the facility to remain viable and continue operating;