Calif. City Cleared To Submit Ch. 9 Plan For Approval

Law360, New York (May 26, 2011, 5:31 PM EDT) -- A bankruptcy judge in California cleared the way Wednesday for Vallejo, Calif., to solicit votes for its Chapter 9 reorganization plan after the city resolved objections from key stakeholders and increased recoveries for unsecured creditors.

U.S. Bankruptcy Judge Michael McManus approved the disclosure statement for Vallejo’s Chapter 9 plan, which aims to balance the city’s budget and rebuild fiscal stability by restructuring its bond debt and scaling back the health care benefits for its unionized workers and retirees.

The bankruptcy plan is premised on a five-year...
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