Wyatt jail operator files Chapter 11 with bond exchange plan
Central Falls Detention Facility Corporation, operator of the Donald W. Wyatt Detention Facility, filed Chapter 11 in Rhode Island on July 10, an event later reported by The Investors News. The voluntary petition opened a balance-sheet restructuring centered on bond debt rather than an operating liquidity collapse: the first-day declaration says the debtor is cash-flow sound for current liabilities but cannot service more than $167 million of bond obligations, comprising approximately $97.3 million of principal and $71.8 million of accrued interest. Holders supporting the restructuring own approximately 71.2% of the bond principal.
The debtor filed its plan on the petition date. Under the Chapter 11 plan, existing bondholders would receive pro rata shares of $27.5 million of Series 2026A bonds and $40 million of Series 2026B bonds, reducing the funded principal burden to $67.5 million. City claims would receive negotiated settlement treatment, while general unsecured claims would be paid in cash or reinstated. The case therefore begins with a defined bond exchange and substantial holder support, making confirmation timing and challenges to the proposed treatment—not a sale or liquidation—the immediate focus.