On September 12, 2012, CalPERS' general counsel released a
public statement setting forth CalPERS'
legal position on the limitations of the power of the
bankruptcy courts to interfere with the relationship between the
state of California and its municipalities regarding the payment of
retirement and other benefits to state employees.
Pensions and other benefits remain at the forefront of the
municipal financial crisis in California, and it appears that
CalPERS may be setting the stage for forthcoming legal battles in
the Stockton case, and perhaps others. CalPERS has previously
proudly boasted that Vallejo
did not take CalPERS on with respect to pension benefits, but only
healthcare retiree benefits.
commentators have predicted a looming constitutional battle
over pension benefits. The acuteness of the pension crisis was made
plain in a Stanford
Institute for Economic Policy Research Report, published
earlier this year, which concluded that aggregate pension costs
have expanded at a rate of 11.4% per year and pension expenditures
represent 10.1% of total municipal spending.
Whether Stockton, San Bernardino or another municipality will
undertake a war of attrition against CalPERS over pension benefits
remains to be seen.
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Unitek Global Services, Inc. ("Unitek" or the "Debtor") filed for bankruptcy under Chapter 11 of the Bankruptcy Code on November 3, 2014 in the United States District Court for the District of Delaware.
On November 7, 2014, Judge Steven Rhodes, the judge presiding over the City of Detroit's bankruptcy case, announced that he would confirm the City's proposed Plan of Adjustment (the "Plan"), including the creditor settlements contained within that Plan.
In In re Houston Regional Sports Network LP,1 Hon. Marvin Isgur of the U.S. Bankruptcy Court for the Southern District of Texas held that an involuntary case commenced to circumvent a contractual clause requiring unanimous director consent to commence a voluntary case (the "unan¬imous-consent clause") was not subject to dis¬missal on bad-faith grounds pursuant to § 1112 (b) of the Bankruptcy Code.
On November 7, 2014, in the neighboring jurisdiction of the United States Bankruptcy Court for the District of New Jersey, Dots, LLC, et al. filed approximately 70 complaints seeking to avoid and recover alleged preferential transfers.
Any defendant to a bankruptcy adversary proceeding seeking to transfer venue of their case should read the recent opinion dated November 3, 2014, in which the Honorable Mary F. Walrath granted Defendant’s motion to transfer venue in the case styled as: IPC Int’l Corp. v. Milwaukee Golf Shopping Center LLC, et al. (In re IPC Int’l Corp.), Adv. No. 14-50333 (MFW) (Bankr. D. Del. Nov. 3, 2014).