CHICAGO — The Menasha Common Council and city utilities commission this week advanced plans that could resolve the Wisconsin city’s debt troubles and a bondholder lawsuit stemming from its now-shuttered steam plant by selling the facility to WPPI Energy. 

The steam plant debt has strained city finances and hurt Menasha’s near-term ability to access the tax-exempt market following its Sept. 1 default on $23 million of plant bond anticipation notes. The city’s appropriation pledge backs up the revenue pledge. A group of investors filed a lawsuit over the default in an attempt to make the city stand behind its pledge.

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