Receiver Withdraws Amended Bankruptcy Plan for Chester

A new plan will be entered after the state Supreme Court ruling on the Chester Water Authority.

Apr. 8, 2026 at 11:36am

Got story updates? Submit your updates here. ›

Chester's receiver has asked the federal bankruptcy court to withdraw his amended Recovery Plan for the city in light of January's Pennsylvania Supreme Court ruling that any decision involving the assets of the Chester Water Authority needs to be made by representatives of the city, Delaware County and Chester County.

Why it matters

The state Supreme Court ruling was a game changer for the city's bankruptcy proceedings, as the previous plan had included monetizing the city's water, stormwater and sewer systems to raise revenue. The Chester Water Authority had filed legal challenges to this plan.

The details

In 2022, then-Receiver Michael Doweary filed for Chapter 9 bankruptcy for Chester as the city was facing $40 million in past due pension payments. As part of that process, he was required to create and file a Plan of Recovery for the city to outline his recommendations for having the city emerge from bankruptcy. Two years later, he filed a plan that included monetizing the three water systems within the city, but this plan was met with resistance, especially by the Chester Water Authority, which filed legal challenges as a result.

  • In January 2026, the state Supreme Court ruled that any decision involving the assets of the Chester Water Authority needs to be made by representatives of the city, Delaware County and Chester County.
  • On March 26, attorneys representing the city filed a motion in the U.S. Bankruptcy Court of the Eastern District of Pennsylvania asking the court to withdraw the amended recovery plan that was filed in August 2024.

The players

Vijay Kapoor

The current receiver for the city of Chester.

Michael Doweary

The former receiver for the city of Chester who filed for Chapter 9 bankruptcy in 2022.

Chester Water Authority

A public water authority that provides services to the city of Chester and the surrounding counties, and has filed legal challenges to the receiver's previous plan to monetize the city's water systems.

Francis Catania

The solicitor for the Chester Water Authority.

Pennsylvania Department of Community and Economic Development (DCED)

The state agency that oversees the Receiver's Office and has provided financial assistance to the city of Chester.

Got photos? Submit your photos here. ›

What they’re saying

“In light of the Supreme Court decision, we thought it best to withdraw the plan that was filed in 2024 and revise it based on new circumstances. We will be filing a new plan (at) some point.”

— Vijay Kapoor, Chester Receiver

“He has no plan. After all that time, he has no filed plan.”

— Francis Catania, Chester Water Authority Solicitor

“Look at all the money that's been wasted by the DCED sending Vijay Kapoor down here to be a bounty hunter. That was their mission and they failed.”

— Francis Catania, Chester Water Authority Solicitor

“As an institution, the DCED could care less about the residents of Chester. They've not demonstrated any concern for the people who live and work in the city of Chester.”

— Francis Catania, Chester Water Authority Solicitor

What’s next

The receiver's office will be filing a new bankruptcy plan for the city of Chester at some point in the future.

The takeaway

The state Supreme Court's ruling on the Chester Water Authority has forced the receiver to go back to the drawing board on the city's bankruptcy plan, highlighting the complex legal and political challenges facing Chester's efforts to address its long-standing financial troubles.