OTHER NEWS - July 1, 1995

O.C. Averts Default of 1st Summer Bond Payment: Using proceeds from Tuesday’s sale of $155 million in so-called Teeter bonds, along with bond funds held in reserve, the county was able to repay investors who held $175 million of outstanding Teeter bonds due Friday. “These investors are obviously overjoyed to get out of the county’s bankruptcy case. They’re out; they’re gone,” said Ursula Hyman, who represents bondholders in the bankruptcy. But even with the Teeter bonds paid off, $800 million in debt payments still loom. A credit-rating agency warned that the county will be in default if it goes through with its proposal to extend the debt for one year. The county owes note holders $600 million on July 10 and the rest on July 19 and Aug. 10.