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Stockton, California Files Bankruptcy - Domino effect or beginning of an avalanche?

Stockton bankruptcy likely to be costly mess
California city would halt many debt payments immediately, cut wages, benefits

By Jim Christie

updated 2 hours 4 minutes ago
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SAN FRANCISCO — A costly mess, including court battles with employees and lenders that could stretch over years, is likely to await Stockton, California, if it cannot reach a last-minute deal with creditors and becomes the largest U.S. city ever to file for bankruptcy.
"A Chapter 9 bankruptcy proceeding is complicated, expensive, time-consuming and uncertain," said James Spiotto, a lawyer and municipal bankruptcy specialist at the Chapman and Cutler law firm in Chicago. "More likely than not, you're not going to get your desired result."

read more http://www.msnbc.msn.com/id/47919864/ns/business-us_business...



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