The federal judge overseeing the bankruptcy of San Bernardino expressed frustration yesterday over the slow progress of talks between the city and its biggest creditor, the California Public Employees' Retirement System (CalPERS), Reuters reported yesterday. Bankruptcy Judge Meredith Jury said that she will probably set a deadline for the city to file a bankruptcy plan, known as a plan of adjustment, at the next hearing on June 19. San Bernardino, about 70 miles east of Los Angeles, filed for chapter 9 bankruptcy protection in August 2012 and does not appear close to presenting a plan of adjustment, which lays out how creditors will be treated. Stockton, another California city which declared bankruptcy about the same time as San Bernardino, is close to emerging from the process. In the San Bernardino case, the city and various creditors met again in court on Thursday. The city is in mediation talks with CalPERS, America's biggest public pension fund with assets of $277 billion. The city and CalPERS said that they needed more time to continue their private discussions, which are subject to a judicial gag order.
