NATCHEZ — Three local companies have attempted to push the Grand Soleil Casino Resort Hotel into Chapter 7 bankruptcy after being owed a collective $1.58 million.

A hearing scheduled for Monday about the involuntary bankruptcy petition was continued until July 28 in Jackson.

According to bankruptcy court documents, Grand Soleil owed the following amounts to companies involved in the petition: $1.1 million to Good Hope Construction; $468,000 to Farmer Electrical Service Co.; and $12,000 to Ketco Advertising-Specialties.

In response to the petition, Grand Soleil’s attorneys, Jack Lazarus and Kent Hudson, wrote the Grand Soleil has disputed debts with Good Hope Construction and Farmer Electrical Service, which are not currently being paid.

The attorneys argued the petition for involuntary bankruptcy was an attempt by Good Home and Farmer’s to collect money off of the genuinely disputed debts.

“The involuntary petition filed against Grand Soleil – Natchez LLC is merely an attempt for collection, and there exists no apparent legitimate reason for the filing of the involuntary at this juncture,” the legal document says.

Included in Grand Soleil’s response, the Grand Soleil denied that its ongoing debts were not being paid “as they mature.”

In addition, the response noted the Grand Soleil has been paying payroll, utilities, insurance, sales taxes, suppliers, vendors and purveyors as payments are due or in a timely fashion.

The answer also states the continuation of the bankruptcy court petition will cause further financial burden to all parties and may damage the Grand Soleil, which is involved in an ongoing loan application process.

“…There exists an adequate forum in which to resolve this dispute in a much more effective and efficient manner,” the document says.

A company in Chapter 7 proceedings is able to continue to operate under the direction of a court trustee until the matter is settled. If the company can resolve its problems and settle with creditors in the interim, it may not have to be liquidated.