Compton May Be Next In Spate Of Calif. City Bankruptcies

Law360, Los Angeles (July 18, 2012, 6:16 PM EDT) -- The cash-strapped city of Compton is reportedly considering filing for bankruptcy, a move that would make it the fourth California city in recent months to opt for bankruptcy protection to manage mounting debts.

Compton Treasurer Douglas Sanders told city council members at a Tuesday meeting that the city, which is facing a budget shortfall of more than $42 million, will need to decide by Aug. 1 whether the municipality will pay its bonds, default on them or file for bankruptcy, according to a Los Angeles Times...
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