Law360, New York (June 27, 2012, 10:56 AM ET) -- Officials for Stockton, Calif., voted late Tuesday to become the largest city ever to file for bankruptcy, taking the plunge after months of closed-door negotiations with creditors failed to patch up a $26 million budget hole.
In a 6-1 vote, the Stockton City Council approved the city manager's plan for operating a budget under Chapter 9 court protection. The insolvent city is expected to make a formal court filing within days.
The impending bankruptcy — sure to be closely watched by other struggling California municipalities —...
Stockton, Calif., Takes Historic Plunge Into Bankruptcy
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