San Bernardino, Calif., filed for bankruptcy protection on Wednesday citing more than $1 billion of debts and making it the third California city to seek protection from creditors.
San Bernardino declared a fiscal crisis last month after a report said local government had tapped out its reserves and projected spending would top revenue by $45 million in the fiscal year that began on July 1.
The filing, made in the United States Bankruptcy Court, Central California District, states that the city has “more than $1 billion” in liabilities, and estimated that it has between 10,001 and 25,000 creditors.
It also states that San Bernardino, a city of about 210,000 residents 65 miles east of Los Angeles, has estimated assets of more than $1 billion.
San Bernardino’s city council voted on July 24 to adopt an emergency three-month fiscal plan that would suspend debt payments, freeze vacant jobs and quit paying into a retiree health fund while city staff produce a more detailed bankruptcy plan.
NBC News has the full article
