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Published on 11/1/2013 in the Prospect News Distressed Debt Daily.

CalPERS appeal of San Bernardino ruling denied direct certification

By Jim Witters

Wilmington, Del., Nov. 1 - The California Public Employees' Retirement System's appeal of a court ruling on City of San Bernardino, Calif.'s eligibility to be a Chapter 9 bankruptcy debtor must go through the U.S. District Court, according to a ruling issued Oct. 31.

CalPERS had sought certification to appeal directly to the U.S. Court Of Appeals for the Ninth Circuit.

The U.S. Bankruptcy Court for the Central District of California said the eligibility ruling as an "interlocutory" order and CalPERS must "obtain leave from the district court to appeal from the interlocutory eligibility orders."

As previously reported, bankruptcy judge Meredith A. Jury granted the city's request for summary judgment and denied CalPERS' challenge in an August ruling and a Sept. 17 written opinion.

San Bernardino filed for bankruptcy on Aug. 1, 2012 in the U.S. Bankruptcy Court for the Central District of California. The Chapter 9 case number is 12-28006.


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