The United States is the biggest public pension insurance system formally put forward against in Wednesday's pursuit of SAN bernardino sought bankruptcy protection, reason is "chaos" in California city financial position.
SAN bernardino, 60 miles east of Los Angeles, a city of 210000 people, aug. 1 declare bankruptcy. Since then, it has to stop pay pension, with powerful California public employees retirement system (CalPERS), its largest creditor.
The local government on how to deal with and pension costs soaring circumstances, can set precedent. In particular, it is in the municipal bankrupt creditors how to treat their retirement funds and Wall Street bond holder and bond insurers confrontation between the stage.
Last week, retirement funds in public statements, clearly put forward, it would not tolerate SAN bernardino, or any other California city, the lack of money in the fund. SAN bernardino declare bankruptcy, there have been missed six double weeks payment, worth more than 6 million dollars.
The creditors' objection SAN bernardino of bankruptcy claim deadline day, retirement fund presented a 20 pages objection and 116 exhibits.
In the case that the documents submitted by the, said last Wednesday pension fund, has been think its fund contributions will never be suspended, or even bankruptcy, SAN bernardino whether it can be sought bankruptcy protection of any dispute shall be postponed to city presented a detailed financial plan.
Pension funds in the submitted documents said: "the city's financial records is lost their cool,".
It added: "in this preliminary opposition submitted the pension fund, the aim is to start a costly race qualification (file for bankruptcy) and delayed relevant qualification of any dispute, until the city reliable forecast, it may form a feasible plan based on".
The holder of a bond creditor (Wednesday) at 5 PM, objection by the deadline, did not appear on the agenda against SAN bernardino qualifications, file for bankruptcy protection.
California's lawyers and experts carol Dennis meal, in chapter 9 bankruptcy protection, part and municipal bankruptcy federal code, says not against the Wall Street's creditors is a deliberate strategy.
If they against city qualifications, and the current situation, Dennis, corvington said will be dismissed - robbery bond holder's retirement fund to pension fund position, as the creditor of struggle.
"No objections suggested strategy is to allow bankruptcy, so that they can concentrate on this issue is what type of creditors' pension fund, Dennis meal said."
SAN bernardino was the first to withhold payment of retirement fund, or that it may be to other creditors pension funds, such as California's authority.
The other two California city - tile listed huo, in 2011, in a bankruptcy, and stockton, this is sought bankruptcy protection - decided to maintain the current all pay retirement fund.
Other News:
California pension fund objects in court to San Bernardino bankruptcy
Israel says 79 rockets fired at it from Gaza
2 US troops die in apparent Afghan insider attack
China expels Bo from legislature, set for trial
US, S Korea Still Unsure of N Korea's Young Leader
Romney: Obama’s campaign is ‘slipping’
BBC boss faces tough questions over Savile scandal
Stockholm subway thief sentenced to prison
