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Article: Desert Hot Springs, Calif., Files for Bankruptcy Protection.
- Article from:
- The Bond Buyer
- Article date:
- December 26, 2001
- Author:
CopyrightCOPYRIGHT 2001 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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A small resort city in the California desert filed for bankruptcy protection last week, citing a multimillion dollar legal judgment related to low- income housing project.
Desert Hot Springs, a community of 16,000 residents, is located 11 miles north of Palm Springs in Riverside County.
The city is no stranger to fiscal challenges. Desert Hot Springs has run budget deficits since the early 1990s and is in default on $1.3 million of tax and revenue anticipation notes that were issued in 1998.
The city hopes to include that debt in a bankruptcy reorganization plan that may give creditors about 20 cents on the dollar.
The city filed under ...