ORANGE COUNTY IN BANKRUPTCY : DAILY DEVELOPMENTS
LIQUIDATING INVESTMENTS: A federal bankruptcy judge approved Orange County’s plan to liquidate its devastated investment pool, now worth $5.4 billion. Thomas W. Hayes, the county’s financial adviser, said the process could take up to 180 days. Officials said they are trying to beat several upcoming announcements that could boost interest rates, cutting into the pool’s value.
* THE POTENTIAL BUYERS: Salomon Bros., which is assisting the county in restructuring the fund, may find a shortage of potential buyers because of pending lawsuits. But experts say the securities are salable at some price. Losses so far total $2.02 billion.
* PUBLIC REACTION: In their first opportunity to address the Board of Supervisors, several members of the public blamed the board for the crisis. “You were negligent,” a Tustin resident told the board. “What won’t work is the current board. Stop blaming others.”
* FALLOUT IN WASHINGTON: Sen. Barbara Boxer (D-Calif.) said an element of the Republicans’ “contract with America” would make it harder for investors in the fund to recover losses through the courts. She called on Republicans to drop the securities law section of the contract. Its author was Rep. Christopher Cox (R-Huntington Beach).
* PROJECT POSTPONED: PUrchase of an $82-million communications network, which police say is vital to updating the county’s antiquated system, was postponed by county officials. It was the first big-ticket item to land on the county’s casualty list.
* SCHOOLS: Schools will remain open, all employees will be paid and business will continue as usual, said Maureen DiMarco, California’s secretary of child development and education.
