Stockton Can Stay in Bankruptcy Over Creditor Objections
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Stockton, California, the biggest U.S. city to file for bankruptcy, won a judge’s permission to stay under court protection after he found that creditors didn’t negotiate in good faith with the city.
U.S. Bankruptcy Judge Christopher M. Klein in Sacramento rejected arguments from creditors including Assured Guaranty Corp. and Franklin Resources Inc. that the city isn’t eligible for bankruptcy and found that creditors “absented themselves from all further discussions” with the city before it filed.