San Bernardino Can Continue Under Ch. 9 Despite Outcry

Law360, Los Angeles (August 28, 2013, 10:20 PM ET) -- A California bankruptcy judge reportedly ruled Wednesday that the beleaguered city of San Bernardino, Calif., is eligible to remain under Chapter 9 bankruptcy protection, despite protests from the state's pension fund for public employees.

Calling bankruptcy San Bernardino's "only hope," Judge Meredith Jury granted the city's request to continue under Chapter 9, ruling that city officials satisfied all the requirements of state and federal law before placing the city in bankruptcy, The New York Times reported.

A CalPERS representative said Thursday the fund is considering its options for appeals but will continue participating in the bankruptcy process...
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