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LIHerald.com: Long Beach to Hire Two Firms to Help it Resolve Nearly $500M in Debt and Other ObligationsApril 13, 2021
O’Melveny was enlisted by the Long Beach City Council in New York to help restructure the municipality’s nearly US$500 million debt, this article reported.
“Simply put, Long Beach is operating an annual budget that carries extreme negative/positive swings in operating fund balances, with holes often plugged by borrowing money, and this is unsustainable,” said Donna Gayden, Long Beach’s interim city manager entrusted with turning around the city’s finances. “But even worse we face total prospective financial obligations that likely exceed $460 million, an enormous amount. We cannot go on with the status quo. The appointment of these firms will begin the process of confronting the City’s challenges.”
O’Melveny partner Maria DiConza commented on the restructuring team’s road ahead: “What we are doing is bringing an objective and holistic approach to Long Beach’s financial problems. Our job is to look at what the options are.”
LIHerald.com subscribers can read the full article here.