San Bernardino Will Soon Emerge from Bankruptcy

by San Antonio Attorney

San?Bernardino is now in the final stage of bankruptcy, which began in 2012.

The disclosure statement is almost approved and majority of the creditors of the city have already reached settlements within the city, which requires them to provide support to the disclosure statement and the further approval of the Plan of Adjustment.

BICEP, otherwise known as the Big Independent Cities Excess Pool, have lawyers who encountered the issue via a disclosure statement.

BICEP is described as a group consisting six midsized cities, which accumulate coverage for claims of liability.  These include civil right claims amounting to more than $1 million.  Both the city and BICEP disagree when it came to handling claims amounting to more than $1 million.

Meredith Jury, a U.S.  Bankruptcy Judge, was slightly irked by objections.

Jury said that the city should file a disclosure statement which resembles the statement from BICEP.  This will also add a section which explains the discrepancies.

Jury added that what these people need to understand is how disputes should work out and how sometimes they can be unreliable.  Should the occurrence be in the class of more than one million, then the city will be held responsible to shouldering the expense of the promises of the ‘unsecured class’.

Most unsecured claims are stipulated to receive a cent for each owed dollar, following the bankruptcy plan of the city.

Jury will then decide if she should give the favor to the city of to BICEP prior to approving the bankruptcy plan of the city.

The first schedule of these hearings for affirming the bankruptcy plan and trying to fish out the city from its status of bankruptcy is slated on October 14.

Initially, the city is set to mail ballots to its creditors on July 29, with the query of whether they will officially approve the plan.

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