Monday, April 1, 2013

Court says city of Stockton, California may proceed with bankruptcy

It's official.
Bob Deis, the Stockton city manager who is largely responsible for managing the bankruptcy process, called the judge's verdict a "vindication" of the city's position.

He criticized the "scorched-earth" legal strategy of the bond creditors as a waste of time and money, and said the city had already spent $6 million to $7 million on the mediation and legal costs.

Assured Guaranty Ltd, one of the bond insurers, said in a statement that it "disagrees" with the judge's ruling but that it looked forward to working with the city on a "consensual approach" to resolving its debts. A company spokesman also said that it had tried to negotiate with the city prior to bankruptcy, but without success.

No comments:

Post a Comment