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Judge Limits Release of Stocktons Mediation Details

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The judge overseeing Stockton, Calif.'s bankruptcy limited the amount of information the city and its creditors can make public about a months-long mediation process that failed, Bloomberg News reported on Friday. On the city's first day in court, Bankruptcy Judge Christopher Klein also said that he may ask another judge to be on call to act as a mediator for a new round of talks between the city and creditors. Stockton is trying to become the first American city since the Great Depression to use bankruptcy to successfully force bondholders to take less than the principal they are owed. On June 28, Stockton became the biggest U.S. city to seek court protection, listing assets of more than $1 billion and debt of more than $500 million. Stockton was in court today seeking approval to release all of the details from a mediation process that ended last month without a deal. Such talks are required under California law before a city can file bankruptcy. Judge Klein rejected part of the request, which was also backed by bondholders. Judge Klein said the city can release later this month its initial 790-page offer to creditors, which the city is calling its "ask." Any counteroffers will remain secret, he said. The city and the bondholders can also release other details, like how often they met and who was present.