Article

2018-02-08 Economy

Stockton, CA files for Chapter Nine Bankruptcy

(Reuters) - Stockton, California, became the largest city to file for bankruptcy in U.S. history on Thursday after years of fiscal mismanagement and a housing market crash left it unable to pay its workers, pensioners and bondholders.

The filing by the city of 300,000 people followed three months of confidential talks with its creditors aimed at averting bankruptcy.

"We are now a Chapter 9 debtor," Marc Levinson, the lawyer who filed the city's voluntary petition in the Eastern District of California, in Sacramento (Case 12-32118) told Reuters.

Pleadings in support of Stockton's eligibility for Chapter 9 bankruptcy will be filed on Friday, Levinson said.

Stockton, which officially declared insolvency and its desire to restructure its debt, also filed a separate list of its major unsecured creditors.

The California Public Employees' Retirement System, which manages Stockton's pension plan, tops the list. The retirement system has a $147.5 million claim for unfunded pension costs.

Posted by badanov 2018-02-08 00:00|| || Front Page|| [22 views ] Top

#1 And in other Stockton news... or Brockton news, anyway...

Two ebony babies of Brockton:
"Da heck has your Democrat bloc done?"
"Our canon defective
Is safe... from perspective
Of Princeton and Sea Girt and Stockton!"

Jeez, it's like you're reading over my shoulder or something.

Posted by Zenobia Floger6220 2018-02-08 00:34|| 2018-02-08 00:34|| Front Page Top

#2 Isn't this the city which recently wanted to guarantee everyone a basic-income no matter what? Legal, Illegal, etc...?

Posted by CrazyFool 2018-02-08 00:36|| 2018-02-08 00:36|| Front Page Top

#3 How on earth does our resident poet laureate know about the City of Champions with seeming fluent knowledge? I GOTS to know!

Posted by Raj 2018-02-08 00:42|| 2018-02-08 00:42|| Front Page Top

#4 The retirement system has a $147.5 million claim for unfunded pension costs.

Promises made that can not be kept will not. Public employee unions are not victims but perpetrators of the problem by ignoring funding abilities. It's all been a magic money tree game. Or to paraphrase a real old but applicable observation of human behavior - you killed the goose that laid the golden egg.

Posted by Procopius2k 2018-02-08 08:24|| 2018-02-08 08:24|| Front Page Top

#5 WOW.
This is Stockton's second run at Chapter 9. June 12, 2012 was the first. (What is about 'right outta Stockton'?)
This is the same thing Orange County did in '94.

Posted by ed in texas 2018-02-08 09:46|| 2018-02-08 09:46|| Front Page Top

#6 the link is to a 2012 article

Stockton emerged from about 30 months of bankruptcy in 2015

they voted to tax themselves an additional 0.75 cents sales tax in 2013 and raised that by 0.25 cents in 2017

they are not in bankruptcy now but their bonds only get a B-

the report of the auditor is here

Posted by lord garth 2018-02-08 10:50|| 2018-02-08 10:50|| Front Page Top

#7 Dang!
I read the article, researched the 'prior' filing, and didn't read the date on the article.
[crap]

Posted by ed in texas 2018-02-08 12:02|| 2018-02-08 12:02|| Front Page Top

#8 Raise the taxes.
Drive those that can out of state.
Fewer consumers means less infrastructure support.
Welcome to Detroit.

Posted by Skidmark 2018-02-08 12:15|| 2018-02-08 12:15|| Front Page Top

#9 the link is to a 2012 article

Very good catch, lord garth.

Posted by trailing wife 2018-02-08 13:22|| 2018-02-08 13:22|| Front Page Top

#10 Yeah, Stockton's good these days. Why, they are handing out free $500 / month "UBI". To a few people, that is.

Posted by KBK 2018-02-08 22:51|| 2018-02-08 22:51|| Front Page Top

09:46 alanc
09:26 SteveS
09:07 AlmostAnonymous5839
08:56 Skidmark
08:53 Super Hose
08:51 Super Hose
08:49 Grom the Reflective
08:43 Jolusing+Hatfield1692
08:37 swksvolFF
08:36 Skidmark
08:33 SteveS
08:28 swksvolFF
08:27 Skidmark
08:22 Skidmark
08:17 Skidmark
08:13 Skidmark
08:08 Bobby
08:05 NN2N1
08:02 Lord Garth
07:59 Skidmark
07:52 Besoeker
07:48 Procopius2k
07:46 NN2N1
07:45 Procopius2k