Bankruptcy Judge Christopher Klein set another hearing for Stockton, Calif.’s chapter 9 case for July 8, in order to get more clarity on collateral at stake, BondBuyer.com reported yesterday. While many expected the case to wrap up this week, Wednesday's proceedings focused mainly on Franklin Advisors, Inc., the only creditor with which Stockton has not reached an agreement. Under the reorganization plan, the city plans to repay the investment firm $350,000 for a $35 million loan, which amounts to less than a penny on the dollar. Franklin's attorney, James Johnston of Jones Day, told the judge he should not confirm the plan because it does not pass the series of hurdles that he had said it must pass in order to exit bankruptcy.
