BROKE

Springfi eld developer Dan Mulcahy has declared bankruptcy in the midst of a lawsuit fi led by former Ward 8 Ald. Irv Smith, who wants to dissolve a partnership formed earlier this year to redevelop the former First United Methodist Church at the intersection of Fifth Street and Capitol Avenue. In his lawsuit, Smith claims that he contributed $250,000 toward the project while Mulcahy contributed nothing and that Mulcahy was inappropriately spending money. Sangamon County Circuit Court Judge Pete Cavanagh issued an order prohibiting Mulcahy from spending any money from Smith shortly after the former alderman sued in August. A hearing last week in Cavanagh’s courtroom went nowhere after Mulcahy informed the court that he had fi led bankruptcy the previous day. Just how the bankruptcy might affect the lawsuit isn’t clear. Cavanagh has issued a gag order barring both sides from discussing the case. This is the second bankruptcy fi ling for Mulcahy, who declared bankruptcy on April Fool’s Day in 2008 and was discharged four months later.