Another California city scrambling to avoid bankruptcy | Fox News
Atwater, a city of roughly 28,000 in California's Central Valley, may
declare a fiscal emergency as soon as next week, but it is trying to
avoid becoming the fourth California city to file for municipal
bankruptcy this year, its mayor said.
Under California law, a local government must either declare a
"fiscal emergency" or go through a 60-to-90 day confidential negotiation
process with its creditors before it files for municipal bankruptcy.
Since late June, three Golden State cities-Stockton, San Bernardino and
Mammoth Lakes-have filed for bankruptcy protection.
"We are planning to stay current on our ... bonds," said Mayor Carol
Joan Faul in a telephone interview with Dow Jones Newswires. "We are
hoping to avoid" bankruptcy, she said, "but as far as I'm concerned, we
may have to declare a fiscal emergency" on Oct. 3.
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