In a legal struggle that's been going on for months, two companies claim the city of Terre Haute is in a breach of contract and owes $172 million.
According to the two companies suing the city, Highland TH LLC and Overseas Lease Group, Terre Haute legally contracted them to dry sludge as part of a deal with a separate sludge-to-fuel company, Powerdyne.
Most recently, Terre Haute made a motion to dismiss the case brought against the city in federal court.
The court Monday granted a two-week extension for the plaintiffs to respond.
Terre Haute Mayor Duke Bennett says the city is confident the contracts are not legally sound because the contract never went in front of the council before it was approved.
"It's not that we don't want to do business with any of these folks, it's just that it has to be done right," Bennett says. "And as we moved along in the process that was a critical step that we found and it just hasn't happened so the contract is not valid."
While the case is being considered, Bennett says any deal with Powerdyne has been shelved.