Another American city goes bankrupt

Citing more than 46 million budget deficit, the city of about 210,000 residents on Wednesday declared bankruptcy to avoid legal action from creditors.

The filing said the city has “more than $1 billion” in liabilities and estimated that it has between 10,001 and 25,000 creditors. According to bankruptcy documents, San Bernardino has assets worth more than USD 1 billion.

“All of our vital service bills will continue to be paid,” said mayor Patrick Morris. “We are going to keep our city services running,” he added.

The city council of San Bernardino voted on July 24 to file for Chapter 9 bankruptcy protection.

Under Chapter 9, all court cases and other legal actions against the bankrupted cities will be halted until the bankruptcy cases are over.

“The bankruptcy filing was just to get the protection in place, to kick the process off,” a city spokesperson said.

The cities of Stockton and Mammoth filed for bankruptcy in June and July respectively.

DB/JR

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