Official: Stockton, CA Will Be Largest US City To File Bankruptcy, Possibly Tomorrow

By
June 26, 2012

Well, there we have it. Also, an item from KCRA explaining municipal bankruptcy. Catch the wave! This could become a trend. Yesterday, I did an item at Big Government on how the state's stand. Only Wisconsin met its pension obligations during 2010. They are almost all in bad shape.

Mediation failed:

STOCKTON, Calif. (AP) – Officials in Stockton, Calif, say mediation with creditors has failed, meaning the city is set to become the largest American city ever to declare bankruptcy.

City Manager Bob Deis said Tuesday that they were unable to reach a deal to restructure hundreds of millions of dollars of debt under a new state law designed to help municipalities avoid bankruptcy.

Monday marked the three-month deadline for negotiations.

On Tuesday, the City Council was expected to vote on a special bankruptcy budget to plug next year's anticipated $26 million deficit.

 



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