California cities in bankruptcy

The High Sierra ski town of Mammoth Lakes filed for bankruptcy because it cannot afford to pay a $43-million breach-of-contract judgment against it brought by a developer. The resort village, above, is empty during a late-season snowstorm. (Mark Boster / Los Angeles Times)

July 2, 2012 3:32 PM PT

After Stockton became the largest city in the nation to file for bankruptcy, other cities hit hard by the housing bust and state budget crisis began watching to see whether municipal bankruptcy proves medicine or poison.

Mammoth Lakes officials said bankruptcy is the only option left for the town. Above, people gather around a fire ring to keep warm after a day on the mountain at The Village in Mammoth Lakes. (Brian van der Brug / Los Angeles Times)

Stockton became the largest city in the nation to file for bankruptcy June 28. (Peter DaSilva / EPA)

The Stockton Arena, left, and the University Plaza Waterfront Hotel were part of a multimillion-dollar revitalization of downtown Stockton that has largely failed to produce the economic benefits promised by politicians and developers. The Stockton City Council halted bond payments, slashed employee benefits and adopted an emergency budget in a June 26 vote. (Luis Sinco / Los Angeles Times)

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California cities in bankruptcy

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