Monday, April 01, 2013

Judge Clears Stockton for Bankruptcy

A U.S. bankruptcy judge’s decision Monday cleared the way for indebted Stockton, Calif., to seek relief through Chapter 9 bankruptcy. Experts say the precedent-setting case has implications for other financially struggling cities such as Detroit, as well as municipal bondholders, public workers and retirees.

“The fact of the matter is, the city can’t pay its bills,” said Marc Levinson, lead bankruptcy counsel for the city of Stockton. With the judge’s ruling, “We have a forum to try to discuss the city’s debts.”
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