The Crack’d Egg, a Brentwood restaurant that is embroiled in a legal dispute with Allegheny County, is seeking to withdraw its separate Chapter 11 bankruptcy case.

A hearing on the bankruptcy matter is scheduled for Feb. 23.

In the Monday filing, the restaurant’s attorneys wrote that the Chapter 11 bankruptcy “was filed primarily due to a dispute between the debtor and the Allegheny County Health Department regarding debtor’s compliance with ACHD cover guidelines.”

In August, the health department ordered the Brownsville Road restaurant to close because it refused to follow the governor’s state mandated covid-19 mitigation measures requiring masks and social distancing.

Crack’d Egg’s owner, Kimberly Waigand, did not heed the closure order and has been operating ever since.

When the restaurant’s attorneys filed the bankruptcy action, they expected that it would stay the county health department action.

However, U.S. Bankruptcy Court Judge Jeffery A. Deller ruled that the stay did not apply. The closure issue returned to Common Pleas Court, and Allegheny County Common Pleas Judge John McVay heard testimony and argument on that case over three days last week. He is expected to rule this week.

Because of that, the Crack’d Egg wrote in its bankruptcy court filing, “the instant Chapter 11 case serves no purpose.

“With an ability to operate, debtor does not need reorganization to address its debt obligations,” they wrote. “If debtor is deprived of the opportunity to operate, it will not be able to propose a feasible plan.”

Further, they wrote, converting their case from a reorganization to a Chapter 7 proceeding would not serve any purpose since the restaurant has no equity in its assets.

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