WHEELWRIGHT, Ky. (AP) - A financially-strapped eastern Kentucky town is threatening to file a lawsuit against a private prison that briefly closed earlier this year.
At issue is a 10-thousand dollar-a-month payment, which Otter Creek Correctional Center's parent company, Corrections Corporation of America, had been paying to the city.
Otter Creek was holding inmates from Indiana under a contract with that state. It stopped making the payments earlier this year. The prison fell on hard times and closed for a month after Indiana recalled the inmates.
In July, the Kentucky Department of Corrections signed a contract with the prison and moved 450 female prisoners into the facility. The prison did not resume the monthly payments to the city.
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