California Law Said Unlikely to Avert Stockton Bankruptcy
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A California law in its first test at forestalling municipal bankruptcies is unlikely to prevent Stockton from becoming the largest U.S. city to seek protection from creditors, according to officials of two employee unions.
The agricultural center of 290,000 has been in talks on its debts with the unions and others even as Wells Fargo & Co. seized control of a downtown building that Stockton bought with $40.8 million in bonds for a new city hall. The city missed a payment of $197,280 in April, according to a regulatory filing.