Court-ordered mediation sessions will take place in the Los Angeles area Monday and Tuesday between lawyers who represent the Town of Mammoth Lakes and Mammoth Lakes Land Acquisition. In Mammoth, the Town Council will hold two special meetings on the days of the mediation sessions.
Last month, the Town of Mammoth filed for bankruptcy, pointing to the $43 million lawsuit judgment debt owed to MLLA. Instead of moving immediately to a bankruptcy eligibility hearing, Bankruptcy Judge Thomas Holman appointed another bankruptcy judge to serve as mediator between Mammoth and MLLA. Judge Elizabeth Perris will sit down with the two sides to search for settlement possibilities.
MLLA attorney Dan Brockett made it clear that the company would fight Mammoth’s bankruptcy and push for payment of their debt. Brockett claims Mammoth has dealt in bad faith and is not insolvent. Town officials disagree.
Apparently to respond to developments in the mediation sessions, the Town Council will meet at 4pm Monday, August 6 for a closed session on legal matters. They will continue Monday’s meeting to another special closed session Tuesday at 6pm.
In papers filed with the Bankruptcy Court, MLLA lawyers claim that in talks with Mammoth they learned that the Town has $5 million in annual, “discretionary” money. MLLA had made an offer that the Town pay roughly $2.5 million a year for 30 years to satisfy the debt. They claim the Town never responded.
No greed and bad decisions from the incompetent town of mammoth lakes, the airport manager and our clown council caused these issues.
Your probably right, but the little people are the ones that are slowly going to have to pay this off.
They’re the colander, and ML is the turnip Trouble … see what they can squeaze out.
Let me get this right. MLLA broke Mammoth, but is now claiming their not broke???
MLLA didnt break Mammoth, the incompetent people running the town did that, or will have soon enough when they are called out for their bad faith dealings with MLLA and be forced to pay their debt.
Um…no you got that wrong. Mammoth tried to F a developer. Developer had better Lawyers. Mammoth tried to kick the can. Mammoth is now screwed. Maybe Rusty or his Dad can come to the rescue………………………Not…………
have a feeling Rusty is already packing his bags for greener pastures.
Bye bye Mammoth
Trouble, Does the Town of Mammoth Lakes have $43,000,000. “liquid cash” to pay the MLLA judgement? No. ( they only want cash, no property ) That explains the BK filing. MLLA Lawyers bought the lawsuit from Terry Ballas for $5,000,000. MLLA’s last settlement offer meant they would make approx. $70,000,000.… Read more »