SAN BERNARDINO, California — The San Bernardino City Council has voted for a bankruptcy exit plan that would slash retirees' health care coverage and contract out for services like fire and waste disposal.
The Sun newspaper says (http://bit.ly/1cMf7HS) the council voted 6-1 in favor of the plan on Monday night.
The vote came after the city's administrators and advisers strongly suggested passage to the council. And it came before a firm May 30 deadline to submit the roadmap — called a Plan of Adjustment — to U.S. Bankruptcy Court.
The proposal made public last week would require the city to pay one percent of the $50 million owed to pension obligation bondholders.
San Bernardino filed for bankruptcy protection in 2012.
Creditors can still object to provisions of the plan and the city will keep negotiating with them.
Information from: The Sun, http://www.sbsun.com
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