City leaders in Stockton, Calif., are urging a federal judge to let the city exit bankruptcy with a court-approved reorganization plan, despite an appeal of that proposal filed by mutual-fund giant Franklin Templeton Investments, the Wall Street Journal reported on Saturday. In court papers, Stockton officials said that the appeal from Franklin Templeton, which is arguing that the 300,000-resident city can afford to repay more money on the municipal bonds it issued, could take years to litigate. During the appellate process, Franklin Templeton’s lawyers asked that Stockton remain in bankruptcy, which city leaders argued would unfairly delay payments to retired municipal workers who have agreed to give up their health care benefits and accept a one-time payment instead.
