Bingham Square Apartments owner files for bankruptcy
The owner of Anderson’s Bingham Square Apartments – part of state and local lawsuits over the abandonment of tenants – has filed for bankruptcy. IPR’s Thomas Ouellette reports on what this means for Anderson and the nearly two-million dollars the city is owed.
Anderson is seeking repayment for a $900,000 bond intended for upgrades to the Bingham Square apartment complex. Those were never done. The company also owes nearly $1 million in unpaid utility bills.
Mike Austin is the attorney for the Anderson Redevelopment Commission. He says filing for bankruptcy means PR Bingham can stay in business while working on a repayment plan.
“There is the potential that the Chapter 11 bankruptcy could be a, good development, for the city,” he said.
Austin says the commission won’t know much about that repayment process until they see the plan worked out in court.
When asked for comment, a lawyer for PR Bingham says any impact the bankruptcy has on obligations to the city will be handled by the bankruptcy trustee.
Last year, Indiana Attorney General Todd Rokita filed a lawsuit against PR Bingham for violating the Deceptive Consumer Sales Act, Home Loan Practices Act, and the Uniform Business Organizations Act. The lawsuit says the management of the complex also abandoned tenants.
Multiple families had still been living in the deteriorating units at Bingham Square until electricity was shut off by the city in November. Since then, the majority of lease-holding tenants have had assistance moving to new locations.
Kim Townsend is the CEO of the Anderson Housing Authority. She’s been trying to improve things for the tenants at Bingham Square for years. She says she’s happy knowing that the owners are facing lasting repercussions for their neglect of their tenants.
“They will feel the effects. They just can’t walk away unscathed by their actions,” she said. “Even having to file bankruptcy, it will haunt you. You will not be able to do these type of developments again and, again, defraud communities.”
PR Bingham also owes the Anderson Housing Authority $9,000 in unpaid housing assistance.
Thomas Ouellette is our reporter and producer. Contact him at [email protected]
