| June 18
June 18 Bankrupt San Bernardino has reached an
interim deal with its biggest creditor, the California Public
Employees' Retirement System (Calpers), that will help the city
plan its exit from bankruptcy, according to a court filing.
In a status report ahead of a hearing on Thursday with the
judge overseeing the bankruptcy, the city's lawyers said the
deal has led San Bernardino to start paying back its debt to
The agreement marks a significant breakthrough in the
bankruptcy. When the parties last met in May the judge expressed
her frustration over the slow pace of talks between the city and
Calpers, and that the city appeared a long way from producing a
bankruptcy plan, known as a plan of adjustment.
The city refused to divulge details of the deal, which has
only been shared with a court-appointed mediator. An interim
agreement has been reached with Calpers "regarding various
items," the city said.
San Bernardino, 65 miles east of Los Angeles, declared
bankruptcy in 2012. For an entire year after that, it stopped
making its employer contributions to Calpers. No entity has ever
before halted payments to Calpers, America's biggest public
pension fund with assets of $277 billion.
Calpers says the city's arrears are about $16.5 million,
with growing interest.
Calpers is the only remaining creditor that continues to
oppose San Bernardino's bankruptcy. The case has moved far
slower than the bankruptcy proceedings in Stockton, California,
and last year's $18 billion crash of Detroit, where a trial to
adjudicate its bankruptcy plan begins in August.
(Reporting by Tim Reid; Editing by Grant McCool)