Bankruptcy plan for Stockton, California, that saves worker pensions is confirmed by judge
Port of Stockton, California. Image from Shutterstock.
Saying that a bankruptcy plan for the California city of Stockton was “the best that could be done in terms of restructuring the city’s debts,” a federal judge on Thursday rejected arguments that bondholders should get a bigger share and allowed pensions for municipal workers to be preserved.
U.S. Bankruptcy Judge Christopher Klein also said at the Sacramento hearing that retirees had made significant concessions, including a loss of health benefits, costing them some $550 million, the New York Times’ DealBook blog.
Bloomberg, the Los Angeles Times (sub. req.) and Reuters also have stories.
Related coverage:
ABAJournal.com: “Bankruptcy judge’s ruling that California city’s pensions can be cut could have big impact”
