CYPRESS : City Chooses Option A to Recoup Pool Losses
The City Council this week voted unanimously to take Option A as a settlement with the bankrupt Orange County investment pool.
That option--one of three the county offered to investors--will allow Cypress to immediately recoup about $4.5 million of the $5.8 million it had invested in the pool when the county declared bankruptcy Dec. 6.
City Manager Darrell Essex said that in addition to the immediate $4.5 million, the city will get another $217,551 from the pool by June 5 under Option A.
Option A allows investors to recoup immediately about 76% of their invested money, plus about 4% by June 5. The rest of the money, the county says, would be repaid over an extended period. In accepting Option A, an investor agrees not to sue the county.
Option B allows for return of 76% of investment only, with the limited right to sue. And Option C allows no cash return and the full right to sue.
Cypress council members on Monday night said they disliked the decision they were forced to make. They said, however, that Option A was the best choice.
“I don’t like what we’re getting, but I think Option A is the best at this time,” said Councilman Tom Carroll.
Added Councilwoman Gail H. Kerry: “It’s unfortunate. We’re caught in the middle.”
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