December 17, 2012 – The city is prepared for a major hearing in bankruptcy court Friday and strongly rejects claims by its top creditor that its bankruptcy is a “sham,” City Attorney James F. Penman said at Monday’s City Council meeting. “We think we have a very strong case,” Penman said, referring to the city’s fight to convince bankruptcy Judge Meredith Jury that it is eligible for Chapter 9 bankruptcy protection. Jury may decide Friday whether San Bernardino qualifies to be in bankruptcy court, and thus to block those owed money by the city from seizing city assets to make up for that debt. Without bankruptcy protection, city officials have said, the city wouldn’t be able to afford basic services like police and fire protection and would be forced to dissolve.
Link to Full Article: http://www.sbsun.com/news/ci_22212037