San Bernardino Seeks Ruling It’s Eligible for Chapter 9

San Bernardino asked a bankruptcy judge to set aside the objections of two public employees’ pension funds and rule that the California city is eligible for Chapter 9 protection.

Lawyers for the city filed a request for summary judgment yesterday in U.S. Bankruptcy Court in Riverside, California.

“The city requests that the court deny all the objections in their entirety and enter an order for relief so that the city can continue discussions and negotiations with its creditors, devote more of its limited resources to those negotiations, and prepare and propose a plan of adjustment,” lawyers for San Bernardino said in the filing.

The city sought bankruptcy on Aug. 1, claiming a cash crisis prevented it from negotiating with creditors first, which is a requirement under California law. The California Public Employees’ Retirement System and the San Bernardino Public Employees’ Association have challenged the legality of the filing.

The case is In re San Bernardino, 12-28006, U.S. Bankruptcy Court, Central District of California (Riverside).

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