IE Business Daily Business news for the Inland Empire.
San Bernardino gave the public its first look at how it plans to get out of bankruptcy and restore itself to financial respectability yesterday.
City officials declined to release details ahead of time, but said they’re confident the plan will be approved by the bankruptcy court and ultimately will succeed once it’s put in place, according to published reports.
Creditors may file objections once the plan is filed in court. How many objections are filed, and now detailed they are, ultimately will determine how long it takes the city to get out of bankruptcy.
San Bernardino has negotiated with virtually all of its creditors since it file for Chapter 9 protection in 2012.
It reached an agreement last year with its largest creditor, the California Public Employees Retirement System. That agreement calls for CalPERS to be repaid about $16 million in monthly pension dues, according to the reports.
Restoring pensions will help stabilize the city’s workforce, but some creditors probably will be asked to settle for less than they’re owed, the reports stated.
