Press Releases

Orange County Creditors Overwhelmingly Approve Adjustment Plan

County Executive Office - Press Release

COUNTY OF ORANGE   FOR IMMEDIATE RELEASE
May 14, 1996

Orange County Creditors Overwhelmingly Approve Adjustment Plan

Santa Ana, California -- The County of Orange announced it has received overwhelming approval of the County's Plan of Adjustment from County Creditors. The final tabulation of approximately 7,198 ballots from more than 15,000 ballots mailed to creditors indicate that most classes of creditors support the county's plan in the range of 97%-100%. The tabulation of ballots was filed with U.S. Bankruptcy Court today at 1:50 p.m.

The final component of the County's recovery effort will be the issuance of approximately $800 million of Recovery Certificates of Participation (Recovery COP's) which will provide full payment of the County's Chapter 9 related claims including public debt which matures on June 30, 1996, vendor claims, labor claims and administrative claims. Early indications point to a successful issuance, in part due to the commitment from MBIA to insure the Recovery COP's.

Federal Bankruptcy Court is expected to confirm the Plan of Adjustment at a hearing scheduled for tomorrow, May 15, 1996. Bruce Bennett, the County's lead Bankruptcy Attorney commented, "The 18 month, light-speed of the County's emergency from Chapter 9 is nothing short of miraculous and made possible by a recovery team that solved a wide range of problems." He continued, "As a normal part of the process, there may be a small number of appeals, but we certainly do not expect anything that will slow the rock-solid record of recovery for the County."

Jan Mittermeier, Orange County Chief Executive Officer commented, "We appreciate the confidence and support of the pool participants and creditors; including cities, special districts, vendors, and employees." She continued, "Their overwhelming acceptance demonstrates their faith in the County's ability to meet its obligations and continue its services to the residents of Orange County."