O.C. Bankruptcy Payouts Total Nearly $864 Million

Former state Treasurer Tom Hayes spent most of Thursday at the Hyatt Regency Hotel writing checks.

Appointed by the court to oversee the lawsuits of about 200 municipal and governmental agencies that lost billions of dollars in the 1994 Orange County bankruptcy, Hayes made good on their final settlements.

“Everybody’s happy to get their money,” said Hayes, who doled out about $829 million Thursday though the total payout, he said, was closer to $864 million, considering payments to other agencies made last week. “In fact,” Hayes said, “they’re delighted with the outcome.”

Those sentiments were echoed by representatives of various cities, school districts and other agencies who had to pass an armed guard at the door, present identification and sign in before collecting their checks.

“It was a good day,” said Jeff Niven, deputy treasurer of Irvine, which collected $29.6 million. Niven originally had an appointment at 1:30 p.m. but showed up early, he said, because “I wanted to be able to invest the money over the weekend. I feel relieved. It’s been five years. I feel satisfied that we all had the fortitude to stick it out.”

County Supervisor Jim Silva had mixed feelings, however. “I’m very pleased to hear that the funds are being distributed,” he said, “but this closes the next-to-the-last chapter. The last chapter is paying off that bankruptcy.”

Still far from full recovery, the county has more to do, Silva said, including paying off about $1.2 billion in recovery bonds issued in 1995 and 1996 to cover the costs of the bankruptcy.

Supervisors and county officials noted recent ratings with Wall Street agencies that have boosted the county’s once-dismal credit rating to its highest level since the 1994 financial crisis.