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Mammoth Lakes town council votes to file for bankruptcy


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Reuters

The leaders of Mammoth Lakes voted on Monday to approve a bankruptcy filing for the ski resort town, just days after Stockton became the most populous U.S. city to turn to bankruptcy court for protection from its creditors.

The vote by the Mammoth Lakes town council to seek Chapter 9 bankruptcy protection was unanimous, according to a statement on the town’s website.

The town of about 8,000 residents in the Sierra Nevada mountains about 300 miles north of Los Angeles saw no other options after its largest creditor, Mammoth Lakes Land Acquisition, refused to negotiate concessions, the statement said. Mammoth Lakes Land Acquisition won a $43 million legal judgment against the town stemming from a property development dispute that began in 2006.

A new state law requires financially troubled municipalities to attempt mediation with their creditors before they may file for bankruptcy.

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Comments (3)
  1. Hang Ups From Way Back says - Posted: July 3, 2012

    So when some smart azz going to do the same thing to this spiraling broke Tahoe South?

    That mountain as far as skiing goes is supreme compared to this beginners Vail Mary mix up cocktail fib(no taxes loop hole to the poor house) the largest snow-cone making machine this side Mississippi For beginners..

    It it about time to do the same thing here and maybe get some kind investors to pour some asphalt on the streets,rid our selfs these has been city council members that promise us steak and pass a mac burger for the starving residents dressed up as a t-bone made of Spam?

  2. Ted Long says - Posted: July 4, 2012

    Another reason to take the Grand Jury’s recommendation to look at consolidation.Cities no longer are a necessary unit in the order of things only a finacial burden.

  3. Heliman says - Posted: July 4, 2012

    Im with Ted… We need massive consolidation.