Creditors Challenge San Bernardino’s CalPERS Debt Repayment Plan
Last week, two creditors filed a lawsuit against the city of San Bernardino in U.S. Bankruptcy Court in Riverside over the city's plan to repay its $24 million-a-year debt to CalPERS. Ambac Assurance Corp., a New York bond insurer, and EEPK, a Luxembourg bank, argued that the bankrupt city should not be repaying CalPERS when it has not made payments on debts to them totaling more than $59 million.
- "Creditors Launch Challenge to CalPERS, Pensions in San Bernardino Bankruptcy" (Kasler, Sacramento Bee, 1/8).