Mammoth Lakes Bankruptcy Case Ends After Accord in Suit (Bloomberg News)

November 19, 2012 – Mammoth Lakes, the California mountain resort town, won dismissal of its bankruptcy case after settling the $43 million development lawsuit that forced the company to seek court protection from its creditors. U.S. Bankruptcy Judge Thomas Holman in Sacramento today signed an order ending the case about four months after the town became the second of three in California to file bankruptcy this year. Community leaders put the town into bankruptcy in July after being ordered by a state court to pay $43 million to its biggest creditor, Mammoth Lakes Land Acquisition. The town announced a settlement with the company the following month, and in September it asked Holman to dismiss the case. The settlement allows Mammoth Lakes “to resolve numerous significant creditor issues and will provide for the town’s prompt exit from bankruptcy,” the city said in court papers filed in September.

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