Calif. Resort Town To File Ch. 9 After $43M RE Judgment

Law360, New York (July 2, 2012, 10:06 PM EDT) -- The leaders of a California ski resort town decided Monday to file for Chapter 9 bankruptcy after the town was unable to pay a $43 million judgment in a dispute with a real estate developer.

The Mammoth Lakes Town Council unanimously voted to file for bankruptcy after Mammoth Lakes Land Acquisition refused to mediate the judgment against the town and obtained a court order requiring payment by June 30, the town said in a statement.

The town said it was dealing with insufficient revenue to pay...
To view the full article, register now.