Mammoth Bankruptcy Cancelled
Many people who were concerned about the possible ramifications of the Town of Mammoth Lakes (TOML) filing for bankruptcy late this summer may or may not be relieved to know that the bankruptcy proceedings were cancelled when the TOML settled with its largest creditor, Mammoth Lakes Land Acquisition (MLLA).
TOML agreed to a settlement in the amount of $2 Million per year over the next 23 years, which would include all fees and interest owed on the original sum. Clearly, cuts will need to be made to the Town’s budget in order to accommodate this payment plan, which comes out to 10% of the Town’s annual budget.
The good news is that the negative perception of a bankruptcy hanging over our small Town is now removed, but it doesn’t negate the fact that the effects of this settlement will most likely impact Town employees, police force salaries, etc.
The TOML will be deciding over the course of this next year on what cuts to make in order to facilitate the annual payments of the settlement. More than likely, the Town’s budget will become more streamlined and hopefully, this change won’t affect our tourism, which fuels our local economy.
Verena Robinson, Broker/Owner
CA BRE License #01512209
Mammoth Lakes Resort Realty
toll-free (760) 924-8521