Ryan Hagen, Staff Writer
Posted: 03/08/2013 04:39:11 PM PST
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View: City Attorney Jim Penman’s letter | San Bernardino EDA asset transfer review report
Special section: San Bernardino
The city is protected by the automatic stay that was created when it filed for bankruptcy protection, prohibiting creditors or others from seizing city property without first obtaining approval from bankruptcy court, Penman said.
“The city must protect itself and the ongoing reorganization process from this highly damaging action,” Penman writes, asking the controller confirm in writing within five business days that the state won’t take any action against the city. “If the controller fails to provide the written assurances described above, the city will have no choice but to institute proceedings against the controller, applicable third parties and appropriate individuals in order to forestall such disruptive and high y prejudicial conduct.”
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