San Bernardino’s Bankruptcy Eligibility to be Decided at HearingAugust 27, 2013 – In The News
Michael Sweet was quoted in the San Bernardino County Sun article "San Bernardino’s Bankruptcy Eligibility to be Decided at Hearing." While the full text can be found in the August 27, 2013, issue of San Bernardino County Sun, a synopsis is noted below.
A hearing today for the city of San Bernardino, California, will decide whether the city is eligible for Chapter 9 protection. The formal bankruptcy plan will not be revealed by the city until eligibility has been determined.
“I don’t think that is an unreasonable position for them (the city) to take, given how difficult a time they’ve had with CalPERS,” Michael Sweet said. “Having said that, I do think the CalPERS argument – that it was disingenuous for the city to be here and be this far along without an inkling of a plan put on the table – I think the CalPERS position has some credibility to it as well.”
“The unusual situation is I’m not aware of any other cases where a judge did what Judge Jury is doing here and decided to rule, to use summary judgment as a vehicle to resolve eligibility,” Sweet said.