Bond Insurers Say Stockton Is Favoring CalPERS In Ch. 9

Law360, New York (August 9, 2012, 6:43 PM EDT) -- Two municipal bond insurers on Wednesday urged a California bankruptcy judge to throw out Stockton, Calif.’s Chapter 9 proceedings, insisting that the city is favoring the state pension system by not asking for significant concessions that it’s seeking from other creditors.

MBIA Inc. subsidiary National Public Finance Guarantee Corp. and Assured Guaranty Corp. claim that the city, which filed for bankruptcy in June, has not met the Bankruptcy Code requirement that it negotiate in good faith with its creditors prior to seeking protection, because it has yet...
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