Fruits of Overspending: Stockton, Calif. to File for BankruptcySubmitted by DeMolay on Wed, 06/27/2012 - 04:58
Bankruptcy could be filed as soon as Wednesday
* Stockton has $700 mln outstanding debt
* Talks with 18 creditors ended Monday without concessions
By Jim Christie
STOCKTON, Calif., June 27 (Reuters) - Stockton, California will become the largest U.S. city to seek protection from its creditors after its leaders approved a budget on Tuesday night based on the city filing for bankruptcy.
A Chapter 9 bankruptcy by the city of nearly 300,000 in California's Central Valley, about 85 miles (135 km) east of San Francisco, could come as early as Wednesday.