Mammoth Lakes, California to file for bankruptcy

[$teve]

And another bites....


Mammoth Lakes, California to file for bankruptcy
Reporting by Jim Christie; Editing by Padraic Cassidy
SAN FRANCISCO | Tue Jul 3, 2012 5:34pm EDT

(Reuters) - Mammoth Lakes, California, will file later on Tuesday for Chapter 9 bankruptcy protection from its creditors in U.S. Bankruptcy Court for the Eastern District of California, according to its assistant town manager.

Mammoth Lake's town council voted on July 2 in favor of the bankruptcy, specifically to seek protection from a property developer that has a $43 million legal judgment against the resort town of about 8,000 residents in the Sierra Nevada mountains.

Mammoth Lakes Land Acquisition will contest the town's eligibility for Chapter 9 protection, said Dan Brockett, a lawyer for the company.

The company and town have been in a legal fight that began in 2006 over a property development dispute.

Stockton, a city of nearly 300,000 people in California's Central Valley, filed for bankruptcy protection last week, becoming the most populous U.S. city to seek protection from its creditors.

The Sacramento court in which Mammoth Lakes is filing for bankruptcy protection is due on Friday to hear Stockton, California's Chapter 9 case.

http://www.reuters.com/article/2012/...86216120120703

[MoreThanReady]

And another bites....


Mammoth Lakes, California to file for bankruptcy
Reporting by Jim Christie; Editing by Padraic Cassidy
SAN FRANCISCO | Tue Jul 3, 2012 5:34pm EDT





http://www.reuters.com/article/2012/...86216120120703

At least their bankruptcy is due to losing a major lawsuit. Once again, the 'local' government tried to foce a developer to do something, but then couldn't standup to their on requirements. THe amazing thing is that the lawsuit has beeing going on for more than 10 years (ifthe article I read had the dates correct).