Mammoth Lakes Files for Bankruptcy
Mammoth Lakes files for bankruptcy in the face of a $43-million breach-of-contract judgment by developer.
Words: Pete Thomas, Grindtv.com
Mammoth Lakes is known for its world-class skiing and snowboarding, as well as the majestic Sierra Nevada wilderness that surrounds the remote California town.
On Monday, however, Mammoth Lakes also became known for having filed for bankruptcy in the face of a $43-million breach-of-contract judgment brought against the town by a developer.
“It’s wish this hadn’t happened,” Mammoth Lakes Mayor Matthew Lehman told the Mammoth Times. “But it’s not the way the cards fell for us.”
Town officials stated in a news release: “Bankruptcy, unfortunately, is the only option that the Town is left with, 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 of the full judgment by June 30.”
Mammoth Lakes already was struggling economically. It had cut services and asked employees to endure pay reductions. Mammoth Mountain Ski Area in the spring laid off 75 full-time empLoyees. Two weeks ago, Mammoth Mountain Ski Area announced it was closing June Mountain, a sister resort about 30 miles to the north.
Read more at Grind.
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