The Town Council of Mammoth Lakes Town voted unanimously on Monday to approve a bankruptcy filing, less than a month after Stockton filed for bankruptcy protection.
The council said it was the only option it had left after its largest creditor, Mammoth Lakes Land Acquisition, repeatedly refused to mediate its $43 million judgment against the town, and obtained a state court order requiring payment by June 30.
Mammoth Lakes Land Acquisition attorney Dan Brockett told Rueters the town was insincere about mediation and only offered to comply with the law. His client had offered to allow the town of about 8,000 residents to pay off the judgment in 30 years.
Brockett said his client plans to contest the town’s eligibility for bankruptcy.
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