Stockton, Calif.'s Pre-Ch. 9 Sessions Yielded Few Deals

Law360, New York (July 23, 2012, 10:16 PM EDT) -- Aside from tentative agreements with a few city unions, fiscally troubled Stockton, Calif.'s state law-mandated prebankruptcy mediation yielded no deals with creditors, some of whom argue the city never intended to avoid bankruptcy, according to papers the city filed Friday.

Stockton, the largest city ever to file for bankruptcy, filed hundreds of pages of documents in California bankruptcy court about the prebankruptcy closed-door negotiations with creditors required under A.B. 506. The documents show that the city, which faces a $26 million budget deficit, never came close...
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