CalPERS Pushes Court To Kill San Bernardino Bankruptcy

Law360, New York (August 5, 2013, 7:15 PM EDT) -- The California Public Employees' Retirement System on Friday asked a federal judge to stop San Bernardino, Calif., from proceeding with its municipal bankruptcy, arguing that the city’s failure to plan should bar it from insolvency protection.

The city should not be allowed to turn to bankruptcy court after it repeatedly ignored warnings of mismanagement and failed to stop runaway spending, CalPERS, a state pension fund, said in a written filing to U.S. Bankruptcy Judge Meredith A. Jury.

Cities face stiff hurdles to bankruptcy, including a requirement...
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