California city's workers fight bankruptcy effort

Reuters reports:

A lawyer for employees of Vallejo, California filed legal documents in court on Friday challenging city officials who are seeking approval for a rare municipal bankruptcy.

If the officials are successful, the former Navy town of more than 100,000 between San Francisco and the state capital of Sacramento would be the first sizable city in California to have a bankruptcy court order a financial restructuring.

Vallejo's city council voted unanimously in early May to approve a petition for a bankruptcy filing amid falling revenues because of the housing slump and rising employee costs.