Calif. School District Requests End to Bankruptcy Proceedings
OAKLAND, Calif. (AP) _ Richmond’s school system has filed to get out of bankruptcy court, five months after it sought protection from creditors.
″We have creditors left, but we figure we could deal with them outside of bankruptcy,″ said Mike Keebler, a consultant to the district.
A hearing on the request is scheduled for Oct. 3.
The 30,000-student system about 15 miles from San Francisco had won acclaim for its magnet schools aimed at achieving a racial mix of students, but it wound up in U.S. Bankruptcy Court in April because of $50 million in debts.
A grand jury concluded the district had expanded without adequate financial planning.
Only a court order and a last-minute $19 million state bailout prevented the district from ending the school year six weeks early.