Stockton Bankruptcy — A Battle With No Winners?

Stockton, Calif., has cut payments to municipal bondholders and severely slashed its operating budget, but the city continues to fund its obligations to the California Public Employees' Retirement System in full. Municipal bondholder creditors seem intent on challenging the state pension fund, but given what is at stake, it would be no surprise to see any ruling in this bankruptcy case appealed all the way to the U.S. Supreme Court, says Meredith Shippee of Foley & Lardner LLP.

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