San Bernardino Bond Creditors Support City's Ch. 9 Case

Law360, New York (July 11, 2013, 10:04 PM EDT) -- A group of bondholders and bond insurers asked a California bankruptcy judge Thursday to let San Bernardino, Calif., continue with its Chapter 9 case, siding with the insolvent city in a fight against creditors who contend it is ineligible for federal protection.

Ambac Assurance Co., Erste Europäische Pfandbrief-und Kommunalkreditbank AG and Wells Fargo NA combined to second San Bernardino's request for U.S. Bankruptcy Judge Meredith A. Jury to rule that the city qualifies for court protection.

In their joinder, the companies “urge the court to grant...
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