Vallejo, Calif. Wins Court Approval For Ch. 9 Plan

Law360, New York (July 28, 2011, 5:18 PM EDT) -- A California bankruptcy judge on Thursday said he will approve a Chapter 9 plan filed by Vallejo, Calif., after the city resolves a final objection.

U.S. Bankruptcy Judge Michael McManus is allowing the debtor to file a second modified plan by Tuesday that would include “fairly mechanical” changes addressing the city's treatment of executory contracts and unexpired leases, according to Marc Levinson of Orrick Herrington & Sutcliffe LLP, who represents the debtor.

Once those changes — which include the assumption all of Vallejo's contracts that haven't...
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