City leaders in Stockton, Calif., who put their struggling, 310,000-resident city in bankruptcy protection last year expect to propose a bankruptcy-exit plan to the court sometime in September—with or without a debt-cutting deal from its municipal bondholders, Dow Jones Daily Bankruptcy Review reported today. Stockton bankruptcy attorney Marc Levinson last week told Judge Christopher Klein that city officials still are negotiating with bondholder officials and insurers over cuts that would lighten the city’s debt load.
