Stockton seeks to exit from bankruptcy
SACRAMENTO, Calif. (AP) — Residents of Stockton may soon learn if they can put more than two years of financial uncertainty behind them.
The city on Thursday will ask a bankruptcy judge to approve its plan for reorganizing more than $900 million in debt over objections from a lone creditor that argues it was treated unfairly.
Franklin Templeton Investments says it's been offered a fraction of a $32 million still owed, while the city hasn't touched its contract with its pension manager.
The investment firm says it's looking out for its own investors.
The judge can approve or reject the city's plan of adjustment, or send it back into further negotiations with Franklin.
The ruling can be appealed.