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 This material may not be published, broadcast, rewritten or redistributed.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:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Miss. Gov. Bryant: More Uninsured in State Due to Obamacare

Monday, 28 Jul 2014 21:13 PM

Mississippi Republican Gov. Phil Bryant blames Obamacare for the state's increase in the number of people without health . . .

Judge Rules Against LA Clippers' Sterling: Team Can Be Sold

Monday, 28 Jul 2014 21:08 PM

The record $2 billion sale of the Los Angeles Clippers to former Microsoft Corp. Chief Executive Officer Steve Ballmer i . . .

Montel Williams Skeptical of VA Deal, Still Calls for 'Surge'

Monday, 28 Jul 2014 20:48 PM

Montel Williams, who has been advocating for a VA Surge to clear the backlog of veterans needing healthcare, is skepti . . .

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