Judge Dismisses Town of Mammoth Lakes Bankruptcy Case Following Settlement

SACRAMENTO, Calif.—A federal bankruptcy judge dismissed the bankruptcy case of the Town of Mammoth Lakes Nov. 16, following a settlement between the town and its primary creditor that reduces a court-ordered judgment owed by the town from $43 million to $29.5 million (In re Town of Mammoth Lakes, Bankr. E.D. Cal., No. 12-32463-B-9).

Under the settlement, the town will have 23 years to pay Mammoth Lakes Land Acquisition LLC $29.5 million at a fixed 5.17 percent interest rate, instead of the $43 million the town was ordered to pay under a 2008 jury verdict in state trial court. ...