Stockton, Calif., Empowers City Manager To Seek Bankruptcy

Law360, San Diego (June 5, 2012, 12:00 AM EDT) -- Officials for Stockton, Calif., voted Tuesday night to allow the city manager to declare bankruptcy if the city is unable to come to an agreement with its creditors this month that would prevent it from becoming the largest city to file for bankruptcy in the U.S.

In a 6-1 vote, the Stockton City Council agreed to authorize a contingency option for the filing of a Chapter 9 municipal bankruptcy petition if Stockton and a sufficient number of its creditors fail to reach a deal by the...
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