IRVINE : District Trustees Agree to County Pool Offer
School trustees have unanimously approved the county investment pool settlement agreement hoping funds will be returned in time for a $54.5-million bond payment due June 13.
The Irvine Unified School District board this week chose Option A of the plan’s three choices, giving up litigation rights in exchange for a guaranteed cash settlement. The school district had $107 million in the pool when the county declared bankruptcy Dec. 6, more than any other school district in the county.
Deputy Supt. Paul Reed told the board the settlement plan could bring the district about $57.8 million by mid-May. The agreement’s recovery notes, promised by the county to be convertible to cash by June 5, are essential to the district. Irvine Unified officials say the district could be forced into bankruptcy if enough funds are not available by June 13 to make a $54.5-million payment on taxable notes.
“If the recovery notes are good prior to June 13, then we have no problem with the repayment of the taxable notes,” Reed said.
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