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.