Stockton Case Could Rule Out Ch. 9 For Other Cities

Law360, San Diego (March 28, 2013, 11:04 PM EDT) -- A California federal judge is expected to rule Monday on whether creditors can stop Stockton from seeking Chapter 9 relief in what would be the largest-ever U.S. municipal bankruptcy, and attorneys say a decision blocking the bankruptcy would make it harder for distressed municipalities to meet eligibility standards and keep many from seeking Chapter 9 in the first place.

Following a three-day trial that wrapped up Wednesday, U.S. Bankruptcy Judge Christopher Klein is set to give an oral ruling on Stockton’s eligibility as a debtor at...
To view the full article, register now.