Judge Gatewood believes GovGuam’s financing plan is too risky.
Guam – Chief District Court Judge Frances Tydingco-Gatewood has issued her ruling on the financing plan for post-closure care of Ordot Dump, agreeing with federal receivers Gershman Brickner and Bratton.
Gatewood issued her order today, saying the Calvo Administration’s pay-as-you-go proposal “simply is not sufficient nor responsible.”
In her decision, Gatewood points out that GBB’s plan requires no borrowing whereas GovGuam’s version proposes to borrow money by refinancing 2009 section 30 bonds.
Gatewood says although GovGuam has had success in going out into the bond market, “if refinancing does not work as contemplated, it would put the post-closure care of the Ordot Dump at risk, which is something the court is not willing to gamble.”
If the refinancing plan works, however, Gatewood points out that GovGuam will have the ability to use the funding however they want.
Judge Gatewood says the receivership, under the leadership of GBB, will end in 2017.
You can read the full decision by clicking on the file below.