SAN FRANCISCO — Stockton is not alone. The ski town of Mammoth Lakes is also using a new California state mediation law to try to avert Chapter 9 bankruptcy.

City leaders decided last month to use the mediation process specified in last year’s Assembly Bill 506 as a last-ditch effort to try to restructure a $42 million judgment it lost to a developer, which has left the town of 8,200, with an annual budget of $16 million, near bankruptcy.

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