Stockton bankruptcy exit plan OK'd; does not slash pension obligations
Source: Stockton Record
Federal Judge Christopher Klein said today he is confirming Stockton’s proposal for exiting Chapter 9 bankruptcy, a decision that comes 28 months after the financially desperate city first declared itself to be insolvent.
... Stockton also will manage to exit bankruptcy without having to seek adjustments to its pension obligations under the California Public Employees’ Retirement System.
The city gained the judge’s confirmation today even though it never reached a settlement with Franklin Templeton Investments, which lent the city $35 million in 2009.
Stockton’s Plan of Adjustment to exit bankruptcy called for Franklin to receive only a $300,000 repayment of $32 million in still-outstanding unsecured debt. Klein said he was not persuaded by Franklin’s argument that it was being treated unfairly in the city’s bankruptcy exit plan.
Read more: http://www.recordnet.com/article/20141030/NEWS/141039967