The bankrupt city of San Bernardino, Calif., will have to produce much more extensive information — at a pace that its advisers say will be grueling — before it can clear a vital hurdle in the path of bankruptcy plan confirmation, according to Bankruptcy Judge Meredith Jury, the San Bernardino County Sun reported yesterday. In large bankruptcy cases like San Bernardino’s, it’s common for hearings on the adequacy of the disclosure statement filed in support of the adjustment plan to conclude more information is needed. And, based on objections from multiple creditors, that’s what happened in court. But some of the critiques of the plan itself were sharp. Judge Jury said that she wanted to save discussions on whether the plan itself can be confirmed for later, but added that she wanted more information to show that the city’s plan wouldn’t lead to it collapsing into a second bankruptcy in a few years. The city’s disclosure statement, filed in May, is 77 pages, not counting exhibits such as its recovery plan. Judge Jury said that she is trying to allow the city to exit bankruptcy as soon as is prudent. “I do intend to keep this pace moving, but not at a pace that is unreasonable,” she said.
