Bankruptcy

UPDATE: Vallejo Avoids Bankruptcy

By J. Michael McBride

Last Tuesday the City Council unanimously agreed to the bankruptcy filing after the two-month long mediation sessions with unions failed to balance the fiscal plan long-term. Monday the unions proposed a $10.6 million salary reduction in a press conference that could avert the bankruptcy filing. "We do not believe the city is bankrupt, and that filing for bankruptcy is like a big ship aimed at an iceberg," said Mat Mustard, vice president of the Vallejo Police Officer's Association.

The city has been advised that they will run out of money before the end of June and should file bankruptcy within the next 30-60 days. The unions had a separate financial audit conducted on the city finances on May 5th by Harvey M. Rose Associates, dubbed the "Rose Report", which shows a possible $4 million in reserve. Various city council members said that the Rose Report was based on wrong assumptions.

We will keep you posted.

Article: http://www.thereporter.com/ci_9243067?source=rss

Chandra

Full post as published by Texas Lawyer Blog on May 13, 2008 (boomark / email).