Possible legal and financial consequences stemming from the bankruptcy of Superior Silica Sands were the subject of a closed session held Wednesday, Aug. 7, 2019, by the Barron County Board Executive Committee.
County Administrator Jeff French said he asked the committee to meet in closed session to discuss whether to hire special legal counsel to represent the county in the event that it needs to become legally involved in the bankruptcy process.
Barron County has agreements in place in which the sand company has agreed to help pay for highway improvements and maintenance, annual sand mine permit fees and underwrite the cost of restoring property where mining has already taken place.
French said that “at this point it appears the county will be unaffected” by the bankruptcy proceeding. “However, this is a debtor in possession bankruptcy filing, so, nothing can be stated for an absolute certainty,” he added.
Online sources define a “debtor in possession” bankruptcy proceeding as the filing of “a person or corporation that has filed for Chapter 11 bankruptcy protection, but still holds property to which creditors have a legal claim under a lien or other security interest.”