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On October 16, 2013, the U.S. Bankruptcy Court for the Central District of California ruled that the City of San Bernardino is eligible for protection under chapter 9 of the Bankruptcy Code. In re City of San Bernardino, Cal., Case No. 12-28006 (Bankr. C.D. Cal. Oct. 18, 2013). The Court’s decision is an important milestone, as it clarifies that a municipality that does not file a plan with its petition may still meet the Bankruptcy Code requirement that it “desires to effect a plan to adjust [its] debts.” The decision also establishes that a city can prove that it met the requirement that prepetition negotiations were impracticable simply by showing that it has a large number of creditors. Both of these rulings may ultimately have significant implications in the pending eligibility dispute in the City of Detroit’s chapter 9 case.