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RAW: Mammoth Lakes' Chapter 9 Bankruptcy petition dismissed

November 16, 2012

The Town of Mammoth Lakes announced today the dismissal of its bankruptcy case by U.S. Bankruptcy Judge Holman. The dismissal follows the recent historic settlement of a 2008 legal judgment and cancellation of the related airport Development Agreement. The judge’s order is attached to this press release.

The settlement is between the Town, and, collectively, Mammoth Lakes Land Acquisition LLC (MLLA) and Airport Developer Terrence Ballas (“Ballas”).
 
The settlement amount is $29.5 million, substantially less than the $43 million judgment held by MLLA against the Town. The settlement also allows the Town to pay the reduced $29.5 million amount over for 23 years, at a fixed 5.17% interest rate. 
 
The U.S. Bankruptcy Court order dismissing the Town’s case, and detailed settlement documents are available on the Town’s web site: http://www.ci.mammoth-lakes.ca.us/index.aspx?NID=498. 

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