By Ryan Hagen
Posted: 11/05/2012 12:16:45 PM PST
At their second hearing in U.S. Bankruptcy Court in Riverside, attorneys for San Bernardino and creditors agreed to an extended timeline in the process of deciding whether the city is eligible for bankruptcy protection.
The city must file a brief by Nov. 30 arguing to eliminate or consolidate many of the reasons creditors – specifically CalPERS and the union representing middle managers, the San Bernardino Public Employees Association – object to the city’s eligibility to file for bankruptcy. Those two groups must respond by Dec. 14, and the parties will appear in court again Dec. 21.
Other individuals and groups filed brief objections, but Judge Meredith Jury agreed they weren’t substantial.
That’s the timeline requested by the city’s bankruptcy attorney, Paul Glassman of Stradling Yocca Carlson & Rauth, but meeting it may prove difficult. City officials present at the court hearing said they didn’t expect the city’s pendency plan – a more complete version of budget cuts than the pre-pendency plan passed in September – to be ready before Nov. 30, as had originally been expected.
And without that, Jury said, it may be difficult for the city to prove it’s serious about adjusting its debts – a requirement for cities to get bankruptcy protection.
“I think the city leaves itself open to exposure if it doesn’t get a pendency plan soon,” Jury said, saying that she wouldn’t give the city another extension. “You’d better have a good idea what it’s going to say (to include in the Nov. 30 filing).”
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