Straight Outta Compton… Straight Into Default – City May Declare Bankruptcy by September

City of Compton may declare bankruptcy by September: officials

(Reuters) – The City of Compton, a city of 93,000 people located on the outskirts of Los Angeles, must decide by September 1 whether to seek bankruptcy, according to its two most senior financial officials.

Such a move would see it join a growing number of deficit-hobbled California cities that have used the filing to restructure onerous debt loads.

Compton, which has an accumulated $43 million deficit and has depleted what had been a $22 million reserve, will run out of cash to make its payroll on September 1 at its current cash consumption rate, city comptroller Steven Ajobiewe told the city council during a July 17 meeting.

“I have $3 million in the bank and $5 million in warrants due in the next 10 to 12 days,” said city treasurer Doug Sanders. “By then, the council will have a decision to make: don’t pay the bonds, default on them, or have a serious talk about bankruptcy.”

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4 Responses to “Straight Outta Compton… Straight Into Default – City May Declare Bankruptcy by September”
  1. Mario Kenny says:

    It’s official: Germans buy NYSE in $10B deal

    Read more:

    old news that many missed?

    • Mrs. Escandon-O'Rourke says:

      Doc No: 2011-0209415 Record Date: 4/21/2011
      Reel: 0 Image: 0 Pages: 7
      Document Type: NOTICE
      CITY S D

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  2. Mario Kenny says:

    It is CA that will change the face of mortgage fraud, that state has suffered and will suffer for many yrs into the future.

    Pass the bill to the courts and the banksters, fire the judges and take the homes and other property from the banksters

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