Bankrupt San Bernardino has reached an interim deal with its biggest creditor, the California Public Employees' Retirement System (CalPERS), that will help the city plan its exit from bankruptcy, according to a court filing, Reuters reported yesterday. In a status report ahead of a hearing today with the judge overseeing the bankruptcy, the city's lawyers said the deal has led San Bernardino to start paying back its debt to CalPERS. The agreement marks a significant breakthrough in the bankruptcy. When the parties last met in May the judge expressed her frustration over the slow pace of talks between the city and CalPERS, and that the city appeared a long way from producing a bankruptcy plan, known as a plan of adjustment. The city refused to divulge details of the deal, which has only been shared with a court-appointed mediator. An interim agreement has been reached with CalPERS "regarding various items," the city said.
