Stockton, Calif., Mulling Ch. 9 Filing: City Manager

Law360, New York (February 24, 2012, 7:12 PM EST) -- The California farming city of Stockton is mulling a possible municipal bankruptcy filing, the city council said in a document released Friday.

In an update included in an agenda for a city council meeting set to take place Tuesday, City Manager Bob Deis cited the city's “dire fiscal situation” and a best-case/worst-case scenario of $20 million to $38 million projected deficit for fiscal year 2012-13, as he recommended conducting a so-called State AB506 confidential neutral evaluation process.

The city is facing $435 million in unfunded retirement...
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