Stockton, Calif., and its creditors have agreed to extend a mediation period intended to help the city avoid having to file for bankruptcy, Reuters reported yesterday. The two sides will enter into a 30-day extension of talks through June 25 as the end of their 60-day confidential mediation period is drawing to a close. "Our creditors understand our fiscal circumstances and indicates that they believe that it is worth the investment of time and resources to work toward a solution," Stockton Mayor Ann Johnston said. Johnston last week said that city officials are hopeful they can avoid a municipal bankruptcy filing for Stockton, the first big city in California to test a new law requiring pre-bankruptcy mediation after its leaders in February endorsed a restructuring plan for the city's finances.
