June 8, 2026
Posted by: Matthew Lundh, Mayor
About a month ago, on May 4 and 5, we had our Evidentiary Hearing in Yakima before Judge Holt, stemming from City Heights Holdings’ (CHH) objection to our eligibility for Chapter 9 relief. On the first day, Brian Carlson, one of our financial experts, and I were examined and cross-examined. On the second day, Ben Annen of HLA, the city’s engineering firm, and Seth Freeman, our bankruptcy financial advisor, had their turn.
At the conclusion of the hearing, Judge Holt set deadlines for post-hearing briefs, rebuttals, and the final ruling. The first deadline for post-hearing briefs was a week ago Friday, and I’ve linked ours and the one CHH filed below if you would like to read them. They are lengthy, but ours, in particular, details the City’s good-faith offers in prior mediation-privileged settlement efforts and shows the unrealistic demands we were up against.
Cle Elum Post-Hearing Brief: https://bit.ly/3Q6GJjC
CHH Post-Hearing Brief: https://bit.ly/43Ru8nA
Rebuttals are due from each side this Friday, June 12, with oral closing arguments and Judge Holt’s ruling to follow on June 22. I am confident that we will be ruled eligible, and our Plan of Adjustment of Debts will be due by July 31. I am hopeful that we will have a confirmed plan by early fall.