ALJKAZEERA: A U.S. judge on Thursday approved the central California city of Stockton’s plans for exiting bankruptcy, despite objections from a creditor who said it was treated unfairly.
Marking a critical moment in Stockton’s financial recovery, bankruptcy Judge Christopher Klein ruled that the city could move forward with its proposed plan to reorganize more than $900 million in long-term debt.
The approval came despite objection from Franklin Templeton Investments — a creditor owed nearly $32.5 million by Stockton. The firm has argued that the city is asking that it walk away from collecting the debt, while refusing to touch a massive employee pension fund… (more)
EDITOR: Gov. Tom Corbett did all he could to prevent Harrisburg from being able to file for protection from the bankruptcy courts. So instead of the bond guarantor having to agree to accept far less than the face amount, they in time will be made whole. Meanwhile, the taxpayers pay and pay. Presumably the creditor – directly or indirectly – will be among Corbett’s major re-election fund contributors.
