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City of Vallejo Wins Court Approval of Reorganization Plan

Vallejo, California, the biggest U.S. city in bankruptcy, won approval of a plan to exit court protection by cutting interest payments to its bank and reducing benefits to retirees.

The approval comes on the same day that elected officials in Jefferson County, Alabama, agreed put off for at least a week a decision on whether to file the largest municipal bankruptcy in U.S. history in order to negotiate with state officials and creditors.