Stockton Official: Mediation with Creditors Fails

Tuesday, 26 Jun 2012 11:08 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

Officials in Stockton, Calif, say mediation with creditors has failed, meaning the city is set to become the largest American city ever to declare bankruptcy.

City Manager Bob Deis said Tuesday that they were unable to reach a deal to restructure hundreds of millions of dollars of debt under a new state law designed to help municipalities avoid bankruptcy.

Monday marked the three-month deadline for negotiations.

On Tuesday, the City Council was expected to vote on a special bankruptcy budget to plug next year's anticipated $26 million deficit.

The budget is expected to suspend debt payments, reduce payments for retiree medical benefits and increase revenue through code enforcement and parking citations, among other steps.

City lawyers could file for Chapter 9 protection in court as soon as Wednesday.

The river port city of 290,000 in Central California has seen its property taxes and other revenues decline, while expensive investments and generous retiree benefits drained city coffers.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Rick Perry Deletes 'Dos Equis' Tweet Mocking Drunk DA

Monday, 01 Sep 2014 18:09 PM

Texas Gov. Rick Perry scrambled to delete a humorous photo post on his Twitter site which, in a takeoff on the "Most Int . . .

Apple Probes Report ICloud Was Hacked to Gain Stars' Nude Photos

Monday, 01 Sep 2014 17:21 PM

Apple Inc., which is poised to unveil new iPhones next week, said it's investigating reports that hackers used its iClou . . .

Dem Rep. Larson on Congressional Recess: 'We're AWOL'

Monday, 01 Sep 2014 16:41 PM

A Democratic congressman has blasted Congress for going "AWOL" by taking its annual Fall recess, which is mandated under . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved