Ryan Hagen, Staff Writer
Posted: 08/17/2012 10:47:57 AM PDT

Special Section: San Bernardino

RIVERSIDE – San Bernardino appeared in federal bankruptcy court here for the first time Friday, with city officials saying they had agreed before the hearing to give creditors more time to file objections.

U.S. Bankruptcy Judge Meredith Jury approved the new timeline, which has the city filing paperwork to establish its eligibility for Chapter 9 bankruptcy protection by Aug.31 and giving creditors until Oct. 24 to argue the city is not eligible.

Five groups of creditors indicated initial objections, and more opposition is likely, the judge said in a 40-minute hearing in U.S. Bankruptcy Court in Riverside that was generally light-hearted.

“In the history of the few Chapter 9s (bankruptcy filings), I don’t think any have ever gone through without objection,” said Jury, who also oversaw the bankruptcy of Vallejo.

San Bernardino is doing everything it can to manage the bankruptcy, said Paul Glassman, a bankruptcy lawyer hired to represent the city.

“It’s a somber day when a city is forced to file a Chapter 9 petition,” he said. “This Chapter 9 was necessary to ensure that the city will continue to provide essential services.”

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