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Economy
Stockton, CA files for Chapter Nine Bankruptcy
2018-02-08
(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

#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  

#9  the link is to a 2012 article

Very good catch, lord garth.
Posted by: trailing wife   2018-02-08 13:22  

#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  

#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  

#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  

#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  

#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  

#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  

#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  

#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  

00:00