Bankruptcy
Oct. 2, 2013
Stockton's bankruptcy plan likely to avoid precedent-setting fight
According to the city's plan, one of two Wall Street insurers has reached a preliminary agreement with the city over $45 million in bonds. The other is working with the municipality on "outlines of a negotiated settlement over $124 million.
Daily Journal Staff Writer
For months, it looked like Stockton's bankruptcy case might force a court decision over whether public pensions can be trimmed in municipal bankruptcies. Some felt it could establish a pecking order for repayment to the city's debt holders that would impact future cases.
But the draft bankruptcy plan released by Stockton late Friday looks to avoid a precedent-setting fight through tentative agre...
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