23 Apr 2012

Lawyers for CNMI retirees argue Retirement Fund not eligible for bankruptcy petition

6:11 pm on 23 April 2012

Lawyers for retirees who want the Northern Mariana Islands Retirement Fund placed into federal receivership are arguing that the Fund is not eligible to file for bankruptcy.

The Fund filed for Chapter 11 bankruptcy last week in the hope of protecting its holdings while it restructures its obligations.

The Marianas Variety newspaper reports that the lawyers Margery Bronster and Robert Hatch, who represent anonymous retirees, filed a motion in court saying the Fund doesn't meet Chapter 11 requirements because it isn't a person.

They argue that only a person can be a debtor and therefore able to file a Chapter 11 bankruptcy petition but the Fund is an agency of the CNMI.

However the Fund's lawyer, Jeremy Coffey, says his client is an eligible debtor.