They like their crap just the way it is. The city is uncomfortable because the new LA Times will be very interested in covering all the crap going on in the city.
The reason the pension funds would sell their stakes would be because they actually could sell and recoup some if their lost investment in a failing (epically) company, which is now a worthless investment as it is.
As it is now, they are stuck with donut holes and rubber biscuits.
In other words they are screwed.
A lot of posturing over nada.