Representatives of Stockton, Calif., met with creditors and a mediator on Thursday in an effort to win support for a cramdown proposal it will file in court next month to cut its debt and exit bankruptcy, Bloomberg reported yesterday. By meeting with the mediator, Hon. Elizabeth Perris, the city could reach a deal with some creditors before the plan is submitted, Stockton’s attorney said. Should Stockton file a cramdown plan, it can still try to negotiate a settlement. Judge Perris is also part of a team assigned to mediate disputes between Detroit and its creditors. The case is In re Stockton, 12-bk-32118, U.S. Bankruptcy Court, Eastern District of California (Sacramento).
