Calif. Assembly To Take Up Contested Municipal Bankruptcy Bill

Law360, San Diego (May 22, 2012, 9:37 PM EDT) -- As struggling California cities Stockton and Mammoth Lakes make use of a new state law requiring them to negotiate with creditors before filing for bankruptcy, state lawmakers are expected to consider a bill next week that critics claim would derail any progress the cities are making by using the prebankruptcy process.

Assemblyman Bob Wieckowski, D-Fremont, proposed A.B. 506, which was signed into law and prevents local governments from filing for municipal bankruptcy, or Chapter 9, until they work with creditors in a confidential proceeding and gain...
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