San Bernardino Approves Deal to Settle Bankruptcy Bond Fight
- Pension bondholders will be repaid 40 percent of their stakes
- California locality will save $45 million under deal
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San Bernardino, California, moved closer to exiting bankruptcy after striking a deal that gives pension bondholders 40 percent of what they’re owed.
In a statement Tuesday, the city said the settlement approved by the mayor and council reduces its payments by $45 million to creditors Commerzbank Finance & Covered Bond SA and bond insurer Ambac Assurance Corp.