“ToMAYto, ToMAHto”: District Court Holds That Differences in State Law Determine Whether Unpaid Annual Pension Contributions Establish “Insolvency” for Chapter 9 Eligibility Purposes
By EsqSocial Corporation 07/05/25
On March 21, 2025, the U.S. District Court for the Northern District of California affirmed a bankruptcy court’s dismissal of the San Benito Healthcare District’s chapter 9 bankruptcy petition on the grounds that the district’s unpaid annual pension contributions did not suffice to establish that the district was “insolvent”—one of the prerequisites for chapter 9 eligibility....
By: Cadwalader, Wickersham & Taft LLP