ARTICLE
23 November 2013

Desert City Tries to Avoid Bankruptcy Filing Again

The city of Desert Hot Springs, which declared bankruptcy more than a decade ago, will consider declaring a fiscal emergency to get contractors and unions to the bargaining table, as it tries to avoid filing for Chapter 9 protection again.
United States Insolvency/Bankruptcy/Re-Structuring

Michael Sweet was quoted in the Associated Press article "Desert City Tries to Avoid Bankruptcy Filing Again." While the full text can be found in the November 18, 2013, issue of Associated Press, a synopsis is noted below.

The city of Desert Hot Springs, which declared bankruptcy more than a decade ago, will consider declaring a fiscal emergency to get contractors and unions to the bargaining table, as it tries to avoid filing for Chapter 9 protection again.

The meeting Tuesday comes just weeks before a newly elected City Council is slated to take office.

A change in elected officials could have an influence on what route the city takes and how labor groups respond in negotiations, said Michael Sweet.

"Whether they file for bankruptcy will have a lot to do with the economics, and also something to do with the politics," Sweet said.

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