Vallejo to resume bankruptcy hearing in August

July 25, 2008 5:24:22 PM PDT
Hearings to determine whether the City of Vallejo is eligible to declare Chapter 9 bankruptcy concluded Friday morning and will resume Aug. 5, the city's bankruptcy attorney Marc Levinson said Friday afternoon.

Assistant City Manager Craig Whittom testified Friday morning and his testimony will resume next month, Levinson said.

There are no hearings next week because Judge Michael McManus is not available, Levinson said. The hearings started Wednesday in U.S. Bankruptcy Court in Sacramento.

Levinson said the city is pleased with the hearings so far. "We have a long way to go," Levinson said.

At issue during the hearings is whether the city could have avoided filing bankruptcy.

The city's police, fire and electrical workers' unions claim they made contract and wage concessions and made recommendations that could have spared the city from filing for bankruptcy on May 23.

bankruptcy hearings.

The City Council voted May 6 to file for bankruptcy amid the unions accusations at a public hearing that the city was hiding assets.

City officials denied the allegation and said there is a $16 million deficit in the 2008-2009 general fund budget.


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