Mammoth Lakes, the High Sierra mountain resort, became the second California municipality in a week to seek court protection from creditors, filing bankruptcy to shield itself from a $43 million court judgment, Bloomberg News reported yesterday. Mammoth Lakes listed assets of more than $100 million and debt of more than $50 million in court papers filed on Monday. The town council voted to seek bankruptcy protection after its largest creditor, Mammoth Lakes Land Acquisition, won a court order requiring the town to pay the judgment by June 30. The filing comes six days after the northern California city of Stockton filed for bankruptcy with plans to try to impose cuts on bondholders and employees.
