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Bankruptcy Judge: California City May Proceed with Chapter 9 Bankruptcy

SACRAMENTO, Calif. - (Mealey's) A federal bankruptcy judge in California on April 1 ruled that the City of Stockton, Calif., which had filed for Chapter 9 bankruptcy in June, was eligible to seek bankruptcy because the city did not file its petition in bad faith and was indeed insolvent at the...

Cadwalader Clients & Friends Memo: Court Holds that Stockton is Eligible to File for Chapter 9

On April 1, 2013, the U.S. Bankruptcy Court for the Eastern District of California ruled that the City of Stockton qualified to file for protection under chapter 9 of the Bankruptcy Code. The court's decision on this issue serves as an important milestone for chapter 9 jurisprudence, clarifying the...

Now It Gets Interesting - Stockton, CA Found Eligible to Remain in Chapter 9

Nearly nine months after it filed for protection under Chapter 9 of the Bankruptcy Code , a federal bankruptcy judge last week determined that the city of Stockton, California has satisfied the requirements of Section 109(c) of the Bankruptcy Code and may proceed with its efforts to adjust its massive...

The Stockton Saga Continues: Untouchable Pensions on the Chopping Block?

by Barbara Altimus Shreero Judge Christopher M. Klein's decision to accept the City of Stockton's petition for bankruptcy on April 1, 2013 set the stage for a battle over whether public workers' pensions can be reduced through municipal reorganization. Stockton's public revenues...

Stockton Bankruptcy Settlement Preserves Pensions

The Chapter 9 bankruptcy case of Stockton, California has come to an unexpectedly quick and consensual resolution . The outcome here, which will see the city’s pension obligations maintained, is particularly surprising given the vehement opposition of Stockton’s bond insurers at the outset...

Stockton Judge: Pension Obligations Are Not Impervious to Impairment In Chapter 9 Bankruptcy. What Comes Next?

by Ben Feder The perception that public employee pension obligations cannot be impaired in bankruptcy suffered a damaging blow several months ago in the City of Detroit bankruptcy case , and has now been fatally wounded by the recent ruling of Judge Christopher Klein in the Chapter 9 case of Stockton...

Despite Earlier Ruling, Stockton Judge Confirms Plan Leaving Pension Obligations Intact

One month ago, Judge Christopher Klein ruled in the city of Stockton, CA bankruptcy case that public employee pension obligations can be impaired in municipal bankruptcy cases under Chapter 9 of the Bankruptcy Code. Last week, however, Judge Klein approved the plan of adjustment for Stockton that left...