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Stockton Offficially Largest Bankrupt City

Stockton Offficially Largest Bankrupt City

After years of struggles, the Stockton bankruptcy hearing begins today (Mon) in federal court. Stockton has slashed tens of millions of dollars’ worth of city services, and creditors who lent Stockton money are challenging its Chapter 9 bankruptcy petition, but most observers say the city of 300-thousand will be successful. The city's largest creditors are bond insurers who helped the city refinance pension debt.  Some are concerned that Stockton's bankruptcy could lead to other cities defaulting on pension payments to CalPers and other pension funds.

 

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