BOND TICKER : Court Frees More of City’s Pool Funds

Anaheim, which had $169 million frozen in the county’s investment pool, received word Thursday that the U.S. Bankruptcy Court’s creditors’ committee has approved an $18.1-million disbursement of its money, city officials said.

The payment would bring to $43.4 million the total the city has received in emergency funds from the pool, city spokesman Brett Colson said.

“This will definitely help us with our cash flow needs for the immediate future,” Colson said. “These funds are indeed welcomed.”

In early April, the city must repay $100 million of a loan it took out last year specifically to invest in the county investment pool. Colson said Anaheim officials hope to receive an additional disbursement from the county to meet this looming debt payment.

But as a precaution, the city on Thursday sent out requests to 25 banks asking for proposals to help it obtain a $50-million letter of credit.

“We have to begin having other options in place that will help us meet this debt obligation, and this is one of the avenues we are exploring,” Colson said.

The city is also considering selling some of the securities in its existing $874-million investment portfolio in order to meet this debt, Colson said.

--Compiled by Shelby Grad, with Greg Hernandez.