Vallejo Becomes Largest Calif. City To Go Bankrupt

Law360, New York (May 23, 2008, 12:00 AM EDT) -- The city of Vallejo, Calif., reportedly filed for bankruptcy on Friday, facing rising costs and declining tax revenue, making it the largest California city to enter bankruptcy to date.

Vallejo Mayor Osby Davis said the city filed for Chapter 9 bankruptcy protection in the U.S. District Court for the Eastern District of California, Dow Jones reported.

A representative for the Vallejo city government could not immediately be reached for comment.

The City Council voted unanimously to file for Chapter 9 bankruptcy earlier this month, the San...
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