Mammoth Lakes Settlement May Inspire More Ch. 9 Mediation

August 27, 2012 – In The News
Law 360
Some attorneys believe that Mammoth Lakes, Calif.'s recent settlement of the real estate dispute that drove the ski resort town into insolvency is likely to speed up its Chapter 9 proceedings and encourage other municipalities in bankruptcy to use mediation.

Michael A. Sweet, a partner and member of the firm’s Financial Restructuring and Bankruptcy department in San Francisco, recently spoke with Law 360 about the situation in Mammoth Lakes.

“I wouldn't be surprised to see the bankruptcy case dismissed since it was predicated on this single judgment,” Sweet said.

Furthermore, Sweet told Law 360, “A.B. 506 does not strike me as an efficient vehicle for working out situations like the one Mammoth Lakes found itself in, but it could be an efficient vehicle in cases like Stockton, where various creditors are stakeholders and have a desire to see the city get back on its feet."

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