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….
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