Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
San Bernardino bankruptcy filing to set a precedent
Author: Joel R. Glucksman
Date: March 21, 2014
Key Contacts
Back
San Bernardino and its largest creditor, California Public Employees’ Retirement System, have made significant progress in recent negotiations, according to Reuters. The negotiations center on how much the city will pay the pension fund as part of the city’s bankruptcy filing. The city filed for protection under Chapter 9 of the bankruptcy law in August of 2012, with a budget deficit of $45 million.
The San Bernardino bankruptcy case is particularly significant in light of the ongoing Detroit bankruptcy, according to the news source, and lawmakers are looking to the San Bernardino proceedings for precedent as to whether it is the Wall Street bondholders or the Detroit pensioners who should be given priority when a city files for bankruptcy. The federal judge in charge of the Detroit proceedings made a ruling in December that the city’s obligation to pay pensions in full was not unalterable, and as a result, Detroit’s emergency manager proposed a bankruptcy plan to cut the city’s pension payments.
According to San Bernardino’s The Sun, all of the groups involved in that city’s bankruptcy mediations reported progress, with the marked exception of the firefighters’ union. Details regarding the mediation are scarce because of the judicial gag order made by U.S. Bankruptcy Judge Meredith Jury, but mediator Gregg Zive, a retired U.S. bankruptcy judge, was allowed to make a brief statement.
“Significant and substantial progress has been made as a result of extended and good faith negotiations between the City and CalPERS, and such progress lays the foundation for negotiations between the City and other parties,” said Zive. “Negotiations with other parties are still required and there will be a lot of hard work to be done by those parties.”
Many creditors, including the police union, are in agreement, according to the news source. Once the city figures out how much it will owe CalPERS, other creditors will know how much is left to be negotiated over.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Author: Sean M. Pena
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Author: John D. Giampolo
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Author: George McGowan
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
Author: Marc J. Comer
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
Author: George McGowan
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Author: Sean M. Pena
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.