December 10, 2012 – A group of powerful bondholders joined the fight against CalPERS today as the pension fund tries to sue the bankrupt city of San Bernardino. The city’s bondholders and the company that insured the bonds filed a 114-page protest in U.S. Bankruptcy Court, objecting to CalPERS’ attempts to sue the city. CalPERS is owed about $6.9 million by the bankrupt city and has asked the court for permission to sue. Ordinarily, a bankruptcy filing shields a debtor against all litigation. The San Bernardino case is shaping up as a huge test of CalPERS’ muscle and the sacredness of public pensions.
Link to Full Article: http://www.sacbee.com/2012/12/10/5044872/bondholders-object-to-calpers.html