CalPERS Can't Block San Bernardino's Ch. 9 Proceeding

Law360, Los Angeles (September 18, 2013, 8:02 PM EDT) -- A California bankruptcy judge granted judgment in favor of the city of San Bernardino, Calif., on Tuesday, rejecting protests from the California Public Employees' Retirement System and finding that the city is eligible for Chapter 9 bankruptcy relief and can begin proceedings.

The decision comes more than a month after CalPERS asked a federal judge to stop San Bernardino 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...
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