California pension fund objects in court to San Bernardino bankruptcy
(Reuters) America biggest public pension system filed a formal objection on Wednesday to a quest by San cheap canada goose uk Bernardino to seek bankruptcy protection, citing the in the Californian city finances.
A concrete sign marking the city limits for San Bernardino, California buy canada goose jacket cheap is seen July 11, 2012. REUTERS/Alex Gallardo
San Bernardino, a city of 210,000 people 60 miles east of Los Angeles, declared bankruptcy on August 1. Since then it has halted pension payments to the powerful California Public Employee Retirement System uk canada goose (Calpers), its biggest creditor.
The case could set precedent in how local governments deal Canada Goose online with soaring pension costs. In particular, canadian goose jacket it is setting the Canada Goose Online stage for a showdown between Calpers and Wall Canada Goose Outlet Street bondholders and bond insurers over how they are treated as creditors in a municipal bankruptcy.
Last week Calpers made clear in public statements it buy canada goose jacket would not canada goose factory sale Canada Goose online sale tolerate cheap Canada Goose San canada goose store Bernardino, or any other Californian city, missing payments into its fund. Since it declared bankruptcy, canada goose uk black friday San Bernardino has missed six biweekly payments totaling over $6 million.
On the deadline day for creditors to canada goose clearance sale file objections to San Bernardino bankruptcy claim, Canada Goose sale Calpers filed a uk canada goose outlet 20 page objection and 116 pages of exhibits.
In its filing on Wednesday Calpers, which has long argued Canada Goose Parka that contributions to its fund can never be suspended, even in a bankruptcy, said any arguments about whether San Bernardino can seek bankruptcy protection should be deferred until the city presented a detailed financial plan.
city financial records are in disarray, Calpers said in canada goose coats its filing.
It added: filing this preliminary objection, the goal of Calpers is not to start a costly battle over eligibility (for bankruptcy) canada goose black friday sale but rather to defer any dispute about eligibility until the City has produced credible projections which could form the basis of a feasible plan. on Wednesday, the deadline canada goose uk shop for Canada Goose Jackets filing objections, canada goose clearance no bondholder creditors appeared on the court docket as objecting to San Bernardino eligibility for bankruptcy protection.
Karol Denniston, a Californian attorney and expert in Chapter 9 bankruptcy, the section of the canada goose federal code that deals with municipal bankruptcies, said not objecting canada goose coats on sale could well have been a deliberate strategy by those Canada Goose Coats On Sale Wall Street creditors.
If they objected to the city eligibility and prevailed, Denniston said, the case would be dismissed robbing bondholders of taking the fight to Calpers over the pension fund status as a creditor.
absence of objections suggests cagooseclearance a strategy of allowing the bankruptcy to proceed so they can focus on the issue of what type of creditor Calpers is, Denniston said.
Two other Californian cities Vallejo, which emerged from bankruptcy in 2011, and Stockton, which is seeking bankruptcy protection decided to keep current on all payments to Calpers canada goose uk outlet.