LOS ANGELES An official with Arvin, Calif., said the city will file for Chapter 9 bankruptcy and disincorporate if it cannot reach a negotiated settlement with investors who are suing over the city's default last March on $7.89 million of certificates of participation.

The unrated COPs were issued in 1988 to finance the 18-hole Sycamore Canyon golf course, clubhouse, and related facilities. The project is operating at a deficit, city manager Thomas A. Payne said yesterday.

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