• Last modified 282 days ago (Oct. 3, 2019)


Bankruptcy bills keep increasing for Hillsboro

Staff writer

Hillsboro city council approved payment of $6,362 to the law firm representing the city’s interests in the bankruptcy of Hillsboro Community Hospital Tuesday.

Adding $42.31 paid to Klenda Austerman, the firm that represents bond trustee Security Bank of Kansas City, that brings the city’s total legal costs to $71,743.

The case has been in federal bankruptcy court since the court-appointed receiver, Oklahoma-based Cohesive Healthcare Management and Consulting, filed for Chapter 11 bankruptcy protection in March.

The legal battle began in January when a petition for mortgage foreclosure was filed in district court by Bank of Hays.

The lawsuit named the hospital and seven co-defendants including the city and its Public Building Commission. That same month, the city and Bank of Hays worked together to have Cohesive named receiver.

Last modified Oct. 3, 2019