Mammoth Lakes Follows Stockton In Filing For Bankruptcy
LOS ANGELES (AP/CBS13) — Officials in the town of Mammoth Lakes say they've voted unanimously to file for bankruptcy in the face of a $43 million judgment that's more than twice the town's budget.
Assistant Town Manager Marianna Marysheva-Martinez says the local council voted Monday and papers could be filed with the court by Tuesday. The filing will make Mammoth Lakes the second local government after Stockton to use a new state mediation process to file for bankruptcy.
Staring at a $26 million budget shortfall, Stockton decided to file for Chapter 9 protection last week.
Mammoth Lakes, a city of 8,000 people about 200 miles southeast of Sacramento, has lacked sufficient revenue to pay $2.7 million in obligations and a state court has ordered it to repay its largest creditor, Mammoth Lakes Land Acquisition.
Town officials say that during the Chapter 9 bankruptcy filing, agencies including police and fire services will remain intact.
(Copyright 2012 The Associated Press.)
