The holdout creditor in the bankruptcy case of Stockton, California, filed an appeal last week to a judge's ruling that allowed the city to exit chapter 9 protection, Reuters reported on Friday. Franklin Templeton Investments is appealing the court's decision in which it ruled in October to give Franklin more than $4 million from an original debt of roughly $36 million. Franklin argued that Stockton's plan unfairly treated the creditor, particularly compared to other debts such as pensions managed by California Public Employees' Retirement System (CalPERS), and said that the city could "pay far more to Franklin." Last month, Bankruptcy Judge Christopher Klein ruled that Stockton's plan was fair, explaining that "substantial concessions" had been made by all creditors. In addition to haircuts taken by bondholders, public employees had renegotiated contracts, the city had cut positions, and retirees had lost health care benefits.
