South Shore bus bankruptcy case pushed back 2 months

The court hearing originally scheduled for today pertaining to transit on the South Shore has been postponed nearly two months.

At a hearing earlier this month, Heavenly Mountain Resort asked the bankruptcy court in Reno to change the status of the case form a Chapter 11 to a Chapter 7. The court decided to appoint a trustee — or neutral party — to study the facts of the case and make a recommendation.

At issue is MV Transportation has sued the now bankrupt South Tahoe Area Transit Authority in hopes of getting back the nearly $2 million the Fairfield company says it is owed.

STATA oversaw BlueGo, the South Shore buses. Tahoe Transportation District took over for STATA last year.

— Lake Tahoe News staff report