Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
San Bernardino bankruptcy filing to set a precedent
Author: Joel R. Glucksman
Date: March 21, 2014
Key Contacts
Back
San Bernardino and its largest creditor, California Public Employees’ Retirement System, have made significant progress in recent negotiations, according to Reuters. The negotiations center on how much the city will pay the pension fund as part of the city’s bankruptcy filing. The city filed for protection under Chapter 9 of the bankruptcy law in August of 2012, with a budget deficit of $45 million.
The San Bernardino bankruptcy case is particularly significant in light of the ongoing Detroit bankruptcy, according to the news source, and lawmakers are looking to the San Bernardino proceedings for precedent as to whether it is the Wall Street bondholders or the Detroit pensioners who should be given priority when a city files for bankruptcy. The federal judge in charge of the Detroit proceedings made a ruling in December that the city’s obligation to pay pensions in full was not unalterable, and as a result, Detroit’s emergency manager proposed a bankruptcy plan to cut the city’s pension payments.
According to San Bernardino’s The Sun, all of the groups involved in that city’s bankruptcy mediations reported progress, with the marked exception of the firefighters’ union. Details regarding the mediation are scarce because of the judicial gag order made by U.S. Bankruptcy Judge Meredith Jury, but mediator Gregg Zive, a retired U.S. bankruptcy judge, was allowed to make a brief statement.
“Significant and substantial progress has been made as a result of extended and good faith negotiations between the City and CalPERS, and such progress lays the foundation for negotiations between the City and other parties,” said Zive. “Negotiations with other parties are still required and there will be a lot of hard work to be done by those parties.”
Many creditors, including the police union, are in agreement, according to the news source. Once the city figures out how much it will owe CalPERS, other creditors will know how much is left to be negotiated over.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
San Bernardino bankruptcy filing to set a precedent
Author: Joel R. Glucksman
San Bernardino and its largest creditor, California Public Employees’ Retirement System, have made significant progress in recent negotiations, according to Reuters. The negotiations center on how much the city will pay the pension fund as part of the city’s bankruptcy filing. The city filed for protection under Chapter 9 of the bankruptcy law in August of 2012, with a budget deficit of $45 million.
The San Bernardino bankruptcy case is particularly significant in light of the ongoing Detroit bankruptcy, according to the news source, and lawmakers are looking to the San Bernardino proceedings for precedent as to whether it is the Wall Street bondholders or the Detroit pensioners who should be given priority when a city files for bankruptcy. The federal judge in charge of the Detroit proceedings made a ruling in December that the city’s obligation to pay pensions in full was not unalterable, and as a result, Detroit’s emergency manager proposed a bankruptcy plan to cut the city’s pension payments.
According to San Bernardino’s The Sun, all of the groups involved in that city’s bankruptcy mediations reported progress, with the marked exception of the firefighters’ union. Details regarding the mediation are scarce because of the judicial gag order made by U.S. Bankruptcy Judge Meredith Jury, but mediator Gregg Zive, a retired U.S. bankruptcy judge, was allowed to make a brief statement.
“Significant and substantial progress has been made as a result of extended and good faith negotiations between the City and CalPERS, and such progress lays the foundation for negotiations between the City and other parties,” said Zive. “Negotiations with other parties are still required and there will be a lot of hard work to be done by those parties.”
Many creditors, including the police union, are in agreement, according to the news source. Once the city figures out how much it will owe CalPERS, other creditors will know how much is left to be negotiated over.