Law360, New York (May 27, 2015, 4:24 PM EDT) -- San Bernardino's Chapter 9 case is back in the news. On May 18, the city council approved the California city's proposed exit plan for bankruptcy court filing in a 6-1 vote. San Bernardino's plan is challenging to say the least and certainly consistent with Judge Meredith Jury's January comment that "sometimes you have to get ugly to get pretty." The plan reflects the city's "Gordian knot" of financial obligations to bondholders, employees and retirees, and the city's need to deliver essential services to residents without raising taxes beyond the breaking point. The city is facing truly intractable challenges; it is the poorest city of its size in the state and it has few assets to work with. That's why the initial plan is disappointing and looks like an opportunity missed. The report provided to the city council regarding the plan can be found here....