Comment on Stockton seeks to exit from bankruptcy

Stockton seeks to exit from bankruptcy

Marking a critical moment in the bankrupt city's financial recovery, Stockton will ask U.S. Bankruptcy Judge Christopher Klein to approve a plan for reorganizing more than $900 million in long-term debt over objections from a lone creditor that argued it was treated unfairly. Klein ruled earlier this month that bankruptcy law allows the city to treat pension obligations like any other debt, meaning the city could trim benefits. Marc Levinson, the city's lead bankruptcy attorney, declined to comment on the city's treatment of its contract with California Public Employees' Retirement System, or CalPERS, in light of Klein's ruling. The city issued about 3,000 permits annually to build new homes, and it paid police premium wages and health benefits.

 

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