FULLERTON : District to Vote on 3 Options for Investment Refunds

Trustees of the Fullerton School District are to vote Tuesday on which of three bankruptcy settlement options to choose for recovering the district’s money from Orange County’s failed investment pool.

Option A would guarantee the return of 76% of the money in cash, 14% in recovery notes and 10% in IOUs by June 5 if the district waives its right to take legal action, Supt. Duncan Johnson said. Should the county fail to return the money, the district would have until June 8 to switch to Option B, he said.

Option B would give the district 76% of its investment but would allow it to keep the right to litigate, Johnson said.

Under Option C, he said, the district would not accept a settlement, would get no money back now and would preserve its right to sue, he said.

Johnson is recommending that the school board choose the first plan.

“Option A is your best selection because it gives you the opportunity to go to Option B,” Duncan told school board members at a meeting this week. “It gives the district the chance to get its money in the shortest amount of time.”

A decision is expected at a special school board meeting Tuesday.