The city of Stockton, Calif., and its creditors were steered into new talks with a mediator who settled a key dispute in another municipal bankruptcy case as Bankruptcy Judge Christopher Klein said that it may take months to determine if Stockton deserves court protection, Reuters reported yesterday. Attorneys for Stockton and its creditors agreed to a schedule for the coming months for further review of objections to the city's bankruptcy eligibility claim. Stockton will provide documentation through September to its creditors, who have until October 26 to review it. They then face a November 9 deadline for filing substantive objections. Stockton has until December 21 to respond. Judge Klein endorsed the timeline, noting that he intends to methodically work through Stockton's bankruptcy case. He will hold a status hearing on January 8, 2013 on where the case stands and may hold an evidentiary hearing later that month if needed.
