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IN RE CITY OF VALLEJO

BAP No. EC-08-1244-JuMkMo. Bankruptcy No. 08-26813.

408 B.R. 280 (2009)

In re CITY OF VALLEJO, Debtor. International Association of Firefighters, Local 1186; Vallejo Police Officers' Association; International Brotherhood of Electrical Workers Local 2376, Appellants, v. City of Vallejo; Union Bank, N.A.; Wells Fargo Bank, N.A., Appellees.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Filed June 26, 2009.

Attorney(s) appearing for the Case

Katherine Thomas, Washington, DC, Marc A. Levinson, Norman C. Hile, Sacramento, CA, for Debtor.

Robert T. Matsui, Sacramento, CA, for trustee.

Before: JURY, MARKELL, and MONTALI, Bankruptcy Judges.

OPINION

JURY, Bankruptcy Judge.

After months of fiscal manipulations to increase its worsening cash flow and ultimately unsuccessful negotiations with its labor unions, the City of Vallejo ("Vallejo") filed a chapter 9 bankruptcy petition.1 Vallejo asserted it was insolvent and otherwise met the eligibility requirements under § 109(c).

Appellants2, some of Vallejo's unions, appeal the...

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