Can Unions Get Vallejo,CA Bankruptcy Overturned by Federal Appellate Panel ?

Calpensions reports:

Another way the Vallejo bankruptcy could end is with a ruling by a U.S. Bankruptcy Court appellate panel in Los Angeles that Vallejo was not eligible for bankruptcy.

The city said it began the current fiscal year last July with $77.9 million in estimated general fund revenue, less than its $79.4 million cost for labor. By January the revenue estimate had dropped to $72 million.

But the unions argue in their appeal that the city had an additional $116 million in special funds restricted for water, transportation and other purposes. McManus ruled that the city was bankrupt because the special funds cannot relieve the general fund.

“We are frankly confident that the Bankruptcy appellate panel is looking at it extremely closely and is close to reversing that decision,” Kelly Woodruff, an attorney for the unions, told an Assembly committee hearing the AB 155 bankruptcy bill last month.