Local News
| More

Stockton, Calif., Council Backs Plan to Get Out of Bankruptcy

Source: Reuters | October 4, 2013



Stockton, California's city council approved a plan on Thursday for the city to adjust its debt to exit from bankruptcy after reaching a deal with bond insurer Assured Guaranty to restructure more than $150 million of outstanding debt.

The deal marks the end of a long and often bitter fight between Stockton and its biggest bond insurers since the city filed for bankruptcy last year and stunned the U.S. municipal debt market with threats of forcing losses on bondholders while leaving pension payments intact.

"Now we have deals with every bond insurer that's involved in the bankruptcy process," Stockton City Manager Bob Deis said, adding he is hopeful the city is on track to exit bankruptcy in about six months.

"We've got deals with almost everybody," Deis told Reuters, noting the city now has struck deals with all but three of its 19 major creditors.

Talks with the three will continue, Deis added.

View Full Story From Reuters

If you enjoyed this post, subscribe for updates.

Comments



Add Your Comment

You are solely responsible for the content of your comments. GOVERNING reserves the right to remove comments that are considered profane, vulgar, obscene, factually inaccurate, off-topic, or considered a personal attack.

Comments must be fewer than 2000 characters.
Most Viewed
This Section    |    Whole Site
Comments


Featured on Governing.com





GOVERNING Data

Events & Webinars

  • Putting Crooks on Notice: How you can fight Identity Fraud
  • October 24, 2013
  • Fraud is on the rise. There is evidence that fraud has permeated virtually every government-based benefit program at the state, local and federal level. The federal government estimates that three to five percent of public assistance dollars are lost each year to fraud, and tax related identity fraud has grown 650% since 2008.


More Events & Webinars


© 2011 e.Republic, Inc. All Rights reserved.    |   Privacy Policy   |   Site Map