LOS ANGELES -- Bondholders impacted by the San Bernardino, Calif. bankruptcy are fighting an attempt by the California Public Employees’ Retirement System to obtain primacy over other creditors.

Bond insurers Ambac Assurance Company and National Public Finance Guarantee Corp. joined Wells Fargo, the trustee for the city’s pension obligation bonds, in a motion filed Monday that challenges arguments made by CalPERS that it should be given relief from an automatic stay preventing it from filing a lawsuit against the city in state court for $6.9 million in missed payments.

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