Friday, September 05, 2008

Judge approves Vallejo's bankruptcy filing

Overpaid Government Worker reports:
A federal judge ruled Friday the city of Vallejo's bankruptcy case can move forward, rejecting a legal challenge by its police and firefighters unions.

U.S. Bankruptcy Judge Michael McManus in Sacramento ruled that Vallejo met the legal requirements of Chapter 9 bankruptcy protection. He rejected the unions' arguments that the city's finances weren't as bad as officials claimed.