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Stockton, CA files for Chapter Nine Bankruptcy
 (Reuters) - Stockton, California, became the largest city to file for bankruptcy in U.S. history on Thursday after years of fiscal mismanagement and a housing market crash left it unable to pay its workers, pensioners and bondholders.The filing by the city of 300,000 people followed three months of confidential talks with its creditors aimed at averting bankruptcy. "We are now a Chapter 9 debtor," Marc Levinson, the lawyer who filed the city's voluntary petition in the Eastern District of California, in Sacramento (Case 12-32118) told Reuters. Pleadings in support of Stockton's eligibility for Chapter 9 bankruptcy will be filed on Friday, Levinson said. Stockton, which officially declared insolvency and its desire to restructure its debt, also filed a separate list of its major unsecured creditors. The California Public Employees' Retirement System, which manages Stockton's pension plan, tops the list. The retirement system has a $147.5 million claim for unfunded pension costs. Posted by: badanov 2018-02-08 |
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