The contractor hired by the Kentucky Transportation Cabinet (KYTC) to straighten Beehive Curve has filed Chapter 11 bankruptcy.
With mounting lawsuits and burdened by debt up to $100 million, owed to suppliers in multiple states, Charles DeWeese Construction Inc. filed for bankruptcy on July 1.
The company has more than 400 unsecured creditors, according to its bankruptcy filing. The Franklin, Kentucky, company’s top five creditors are — KL Nexus TN (Florida): $7.1 million’ DeAngelis Diamond Construction (Florida): $4.4 million; Fortiline Inc. (Georgia): $4.1 million; Rapid Fueling (Kentucky): $1.5 million; and Kimbro Oil Company (Tennessee) $1 million.
A Chapter 11 bankruptcy generally indicates the company is attempting to reorganize to stay in business. But, the filing could result in the company’s assets being liquidated.
Charles DeWeese Construction was hired in February 2021 by the KYTC to complete extensive roadwork on state maintained Hwy 62 from the William Thomason Byway to just east of Kelley Beekeeping. The aim of the project is to straighten what is popularly referred to as Beehive Curve.
The company began work on the $6.51 million project in 2021 but during the late spring of 2022 construction stopped.
During a Grayson County Fiscal Court meeting on June 7, KYTC maintenance supervisor Bow Warren told magistrates the work stoppage was due “financial difficulties” Charles DeWeese Construction was experiencing.
Warren later expanded on the “financial difficulties” the construction company was having by saying he wasn’t sure when the project would be completed because the “contractor is potentially bankrupt and looking to be bought out.”
“We regret the extended period of inconvenience on local property owners and motorists, but a timeline of continuing construction is not currently available.”
By Ken Howlett, News Director
Contact Ken at ken@k105.com
