Sudden Bankruptcy Stalls Bluegrass Music Museum Project
In late November 2016, a local Owensboro, Ky., news report proclaimed that everything was going fine at the new Bluegrass Music Museum & Hall of Fame. However, on Jan. 9, general contractor Peyronnin Construction Co., which had completed the building’s steel frame, filed for protection from creditors in U.S. federal court in the company’s Evansville, Ind., home city, stalling the $9.4-million museum job and other projects.
The contractor filed under Chapter 7 of the U.S. Bankruptcy code, meaning its intention is to sell off its assets and never resume operations. Employees still are returning equipment back to the company’s Evansville headquarters, says Stacy Wissel, the bankruptcy trustee. She added that she hoped to employ an auctioneer to sell the equipment in March.
Also pending at ENR’s deadline is Wissel’s motion to pay employees one last time. “Absent any objection, the order should be entered forthwith,” she said.
Peyronnin broke ground on the bluegrass music-building project last June and, said a spokesman at the museum, completion had been foreseen sometime between April and June 2018. The building is only 15% complete, with subsurface work done and a steel frame erected.
The museum’s board had not yet officially notified the surety, Great American Insurance Group, said Ed Ray, Owensboro’s city attorney and assistant city manager. The city was overseeing construction on behalf of the museum’s board. In a statement, Great American said it is in close touch with Wissel, awaiting her decision on how to deal with the projects. Ray said Great American had sought out the losing bidders on the project and were in touch with Owensboro officials about the potential claim. Great American is “doing all the due diligence possible, given the limitations” so far, said Ray.
Peyronnin listed $2.05 million in assets and $2.36 million in liabilities. Among its listed creditors were numerous subcontractors and suppliers, such as Madisonville, Ky.-based 5 Star Electric, owed $86,847.30, and Owensboro-based Bruce’s Tri State Roofing, owed $56,574.41.
Looking for quick answers on construction and engineering topics?
Try Ask ENR, our new smart AI search tool.
Ask ENR →
