Stockton, California, Closer to Bankruptcy on Council Vote
This article is for subscribers only.
Stockton, California, moved closer to bankruptcy with a City Council vote to default on some bonds and begin a process that’s required under state law prior to seeking court protection.
The council voted 6-1 yesterday to enter mediation with its biggest creditors, such as bond insurers and labor unions, to seek concessions aimed at helping the community of 292,000 avoid becoming the largest U.S. city by population to enter bankruptcy.