Phase two will focus on paying off $20 million in vendor debt
PETERSBURG – City officials are finalizing what they are describing as phase two of a “financial and operational restructuring plan” that will also include a meeting next month with vendors that are owed money.
The city manager’s office said it will hold an informational meeting with vendors by Jan. 31 and outline more details of its plan at a City Council meeting tomorrow. The city owes about $20 million to vendors that provides services and materials to Petersburg.
Interim City Manager Tom Tyrrell said financial advisors from Davenport & Co. and “multiple offices” from the state are working with the city to restructure its existing debt.
“This restructuring will allow us to accomplish two things,” Tyrell said in a statement last week. “We will be able to build in cash flow and we will begin to pay back approximately $20 million in vendor debt. This will be accomplished in Phase II of our plan.”
As part of the long-term financial plan, the city also needs to also establish a cash reserve and restore its credit rating.