San Bernardino Declares Fiscal Emergency To Hasten Ch. 9

Law360, New York (July 19, 2012, 11:52 AM EDT) -- The San Bernardino City Council voted Wednesday to declare a fiscal emergency, a move that avoids a confrontation with creditors and fast-tracks what will be the third municipal bankruptcy in California in the past month.

The City Council voted 5-2 in favor of the measure, which will allow San Bernardino to dodge the lengthy mediation entanglement that typically accompanies municipal bankruptcy. The vote came after the council decided July 10 to file for Chapter 9 municipal bankruptcy protection amid a $45 million budget shortfall and a...
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