Wednesday, June 27, 2012

The New American Dream: California's Stockton to File for Bankruptcy





From Reuters: Stockton in northern California will become the largest U.S. city to file for bankruptcy after its city council on Tuesday approved a budget based on the assumption that the municipality will seek protection from its creditors.

The Chapter 9 bankruptcy filing for the city of nearly 300,000 in California's Central Valley could come as early as Wednesday.  The council, which voted 6-1 in favor of the 2012-13 budget, had previously authorized Stockton's city manager to file the bankruptcy.

Confidential talks between Stockton and its creditors aimed at averting bankruptcy concluded on Monday with the city failing to win enough concessions to help it close a deficit of $26 million for the fiscal year beginning on July 1, City Manager Bob Deis said….

More?  Check out http://www.cnbc.com/id/47973033

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