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Judge approves bankruptcy trustee’s plan for MAWSS to take over Prichard water system

Judge approves bankruptcy trustee’s plan for MAWSS to take over Prichard water system

MOBILE, Alabama (WALA) – A judge has given the green light for Mobile Area Water and Sewer System to take over the struggling Prichard water and sewer utility.

There’s just one catch.

MAWSS has not yet decided whether there is interest.

The MAWSS proposal is a central provision of a draft master plan prepared by John S. Young Jr., Prichard’s court-appointed water receiver. Mobile County Circuit Court Judge Michael Youngpeter approved the plan in an order this week.

MAWSS recently indicated its willingness to consider acquiring the Prichard utility. If the company agrees, a constitutional amendment would have to be put to a vote in the Alabama legislature and approved by voters.

“The Court encourages local legislators and other key stakeholders to proceed with the drafting of legislation necessary to implement the bankruptcy trustee’s recommendation and to allow a public vote on the matter as soon as possible,” the judge wrote. “Time is of the essence.”

Youngpeter appointed Young last year after finding that the Prichard Water & Sewer Board had defaulted on $55.78 million in back payments in 2019. Young was tasked with turning around a system plagued by corruption allegations, crumbling pipes and a shrinking customer base. Young has told FOX10 News that the utility is in worse shape than he thought.

The utility has not paid its investors for months. Young said the decision was necessary to prioritize other issues, such as public health and an agreement with the Alabama Department of Environmental Quality to address deficiencies at its wastewater treatment plants.

Youngpeter wrote that he understood those challenges and extended the receiver’s deadline to submit the final master plan to Jan. 31 of next year. He also extended the term of the court-appointed Citizens Advisory Board, which is made up of Prichard and Chickasaw residents.

“The Court continues to believe that the liquidator is uniquely suited to address all of the issues identified above and that his appointment therefore remains justified and appropriate,” he wrote.

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