ORANGE
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City officials are estimating that they will recover all of the $5.6 million the city lost in the 1994 Orange County bankruptcy, plus some interest, due to recent legal settlements. The bankruptcy, the largest of its kind in the United States, cost $1.6 billion in losses to cities, school districts and public agencies. Mayor Joanne Coontz said a variety of settlements should refill the city’s coffers. This includes a $980,000 settlement with Hartford Insurance Co., about $2 million from lawsuits against KPMG Peat Marwick and others, and another $3.6 million, representing the city’s share of settlements reached with the county. Other claims are pending, she said. “We have fulfilled our promise to get our taxpayers’ money back,” Coontz said.
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