Stockton, California Files Bankruptcy - Domino effect or beginning of an avalanche?Submitted by Bob-45 on Fri, 06/22/2012 - 12:52
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
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."