Category

Bankruptcy

Stockton Moves Another Step Closer To Bankruptcy

By | Bankruptcy | No Comments

The city of Stockton moved a step closer to becoming the nation’s largest city to declare bankruptcy, authorizing the city manager to file for Chapter 9 protection from creditors.

A 6-1 vote after a tense 4 1/2-hour public meeting Tuesday directed City Manager Bob Deis to file if the current mediation process fails. On March 27, Stockton stopped payments to creditors and  entered a confidential mediation process under AB 506, a California law designed to slow municipal bankruptcies by forcing all parties to the table. Under this law, the bargaining period has a 60-day limit, unless all parties agree to extend it for another 30 days.

Read More