By Dale Kasler
Published: Tuesday, Dec. 11, 2012 – 12:00 am | Page 6B
Last Modified: Tuesday, Dec. 11, 2012 – 9:31 am
CalPERS must now confront a powerful group of foes in its multimillion-dollar fight with bankrupt San Bernardino: the city’s bondholders.
A group of major bondholders filed a 114-page legal protest against CalPERS on Monday, saying the pension fund is trying to win preferential treatment in San Bernardino’s case. CalPERS has been demanding the right to sue the city, which has fallen behind on $6.9 million in payments to the giant pension fund after filing for Chapter 9 bankruptcy protection in August.
The bondholders’ protest increases the likelihood that San Bernardino’s bankruptcy filing will become a major test of CalPERS’ clout and the sacredness of public pensions in general.
A similar fight with municipal bondholders is brewing in Stockton, which filed for Chapter 9 protection in June.
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