California’s Stockton Said to Plan Default, Bankruptcy Vote
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The City Council of Stockton, California, will be asked to vote next week to default on bonds and take the first steps toward bankruptcy, according to a person familiar with the council’s agenda.
City Manager Bob Deis has told council members that he intends to put an item on their agenda for a Feb. 28 meeting that would ask them to approve mediation with creditors as the first step required under a new state law before the city can seek bankruptcy, according to the person, who wasn’t authorized to speak about the matter because it is still confidential.