Stockton, California, Seeks Bankruptcy After Talks Fail
This article is for subscribers only.
Stockton, California filed bankruptcy after talks with bondholders and labor unions failed, making the agricultural center the biggest U.S. city to seek court protection from creditors.
The city of 292,000 listed assets of more than $1 billion and debt of $500 million to $1 billion in court filings yesterday in U.S. Bankruptcy Court in Sacramento, California. The two biggest creditors named in the filing reflect the groups most likely to face cuts imposed as part of the bankruptcy: bondholders and city employees.