Stockton Bankruptcy Judge Slings Sharp Words At Assured

Law360, New York (June 13, 2013, 11:14 PM EDT) -- The California bankruptcy judge overseeing the largest-ever municipal bankruptcy on Wednesday refused a request by Assured Guaranty Corp. to change his determination that the bond insurer failed to negotiate in good faith with the city of Stockton.

In an April ruling affirming Stockton's eligibility for Chapter 9 protection, U.S. Bankruptcy Judge Christopher M. Klein declared that Assured had “voted with [its] feet” and acted as a “stone wall” during negotiations with the city, and he wrote Wednesday that careful reflection persuaded him his original findings are...
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