Creditors launch challenge to CalPERS in San Bernardino bankruptcy

The Sacramento Bee reports:

Two bond firms have filed a formal challenge to bankrupt San Bernardino’s plan to pay its pension obligations to CalPERS, setting up another big court fight over the sanctity of public pensions in California.

Ambac Assurance Corp. and EEPK, a Luxembourg bank, filed the challenge Wednesday in U.S. Bankruptcy Court in Riverside, where San Bernardino has been sorting out its financial woes since 2012.

The move came less than two months after San Bernardino announced that it would pay its $24 million-a-year CalPERS pension bill in full, and had begun paying off millions of dollars in past-due obligations to the giant pension fund.

You'll be hearing more of this , because it is so messy.