well I never thought i would see US citys go bankrupt
A federal judge has ruled that Stockton, California will be allowed to enter bankruptcy. The city, located near San Francisco and home to 300,000, is the largest yet in the US to file for bankruptcy, marking a new low point in a trend sweeping California.
US Bankruptcy Judge Christopher Klein ruled Monday that Stockton would be allowed to begin reorganizing its debt in order to continue carrying out ?its obligations to its citizens on fundamental public safety as well as other basic government services.?
Next, city officials must win the judge?s approval for a specific adjustment plan that allows them to adjust financial debts held by Wall Street creditors who have fought Stockton?s bankruptcy claim and, in the opinion of Judge Klein, acted in bad faith.
?The creditors got a big black eye today,? attorney Karol Denniston, who helped draft bankruptcy legislation for city officials, told the Los Angeles Times. ?Now the stage is set for the real dogfight.?
http://rt.com/usa/stockton-bankruptc...s-largest-191/