For residents of Mammoth Lakes, the looming $43 million lawsuit judgment has been a matter for courtrooms and Town Council closed sessions. Now, citizens wait nervously for real details about what they will have to pay and for how long.
In the week since the Town of Mammoth Lakes announced a tentative settlement with MLLA over the $43 million debt, speculation has run high over the actual amount of the settlement. Officials still will not say. Town Manager Dave Wilbrecht said that he does not have a “specific date” when officials will release full details of the agreement.
Wilbrecht declined to offer much information, but he did say that as in every process there are general terms of an agreement and then details have to be crafted. The Town Manager said, “High level decisions are discussed and agreed on. Details are being worked out – terms and conditions.”
Asked what will happen once all of the paperwork is finalized, Wilbrecht said, “Our legal teams are sorting that out.” He did add that Mammoth may be one of the first municipal bankruptcy cases in which the parties have actually gone through to settlement.
As community speculation over the settlement agreement ranges from high to low dollar amounts, Wilbrecht said the sooner officials can reveal the facts the better. The Town’s earlier press release says that the agreement will remain confidential until it is “fully documented and executed.”
Facts in court briefs posted on the US Bankruptcy Court website show that two documents were filed August 22nd. One lists a schedule of legal procedures toward Mammoth’s hearing for bankruptcy eligibility. The other document is a stay order of all those schedules. That order says, “The parties have executed a term sheet that provides for the resolution of their disputes, subject to the execution of definitive documentation.”
That order says both parties intend to seek the Court’s approval of their agreement. A hearing earlier scheduled for August 29th has been cancelled.
The Town’s original press release announcing a settlement with MLLA said that officials would release additional information to the public “within weeks.”