BANKRUPT: First Major American City Goes UnderSubmitted by emalvini on Tue, 04/02/2013 - 01:17
BANKRUPT: First Major American City Goes Under
By Diana Marcum
April 1, 2013, 1:53 p.m.
STOCKTON -- A federal judge ruled Monday that Stockton is eligible for bankruptcy protection, over the objection of creditors who argued the city could come up with more money.
U.S. Bankruptcy Judge Christopher Klein said Stockton can move forward with a plan to reorganize debt. He twice stated that the creditors had acted in bad faith and had refused to pay their share of the costs for negotiations.