Unions Lose Appeal Of City's Ch. 9 Eligibility Ruling

By Ben James

Law360, New York (June 29, 2009, 12:00 AM ET) -- An appellate panel has rejected a bid by two labor unions to overturn a ruling that the city of Vallejo, Calif., was eligible to file for Chapter 9 bankruptcy, a development that comes as the city and the unions are in court-mandated settlement talks aimed at resolving Vallejo's motion to void its labor agreements with the two groups.

The U.S. Bankruptcy Appellate Panel of the Ninth Circuit handed down a ruling on Friday affirming U.S. Bankruptcy Judge James McManus' Sept. 8, 2008, ruling, and denying a...
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