Thursday, June 28, 2012

Stockton BOS votes to file for Bankruptcy - largest city in US history to file bankruptcy

After desperately trying everything from huge budget cuts to secret negotiations with creditors, the Stockton City Council finally ran out of options Tuesday night and voted to file for bankruptcy.
The 6-1 vote was to authorize a day-to-day operating budget, called a pendency plan, that will go into effect when city officials file for Chapter 9 bankruptcy protection in federal court in Sacramento. That filing is expected Wednesday.

Stockton, a river port with 292,000 residents, will become the biggest city in U.S. history to vote itself into bankruptcy. The previous largest bankrupt city was Vallejo, which filed in 2008 and resumed solvency last year.

To read the remainder of the SF Gate.com article CLICK HERE