Chief Bankruptcy Judge Christopher Klein said yesterday that Stockton, Calif., and creditors contesting its chapter 9 filing could present evidence and witnesses on the eligibility issue during a four-day trial during the week beginning on March 25, Reuters reported yesterday. Stockton, a city of 300,000 in California's Central Valley, last year became the biggest U.S. city to file for bankruptcy with a plan to impair nearly $200 million of its debt. Bond insurers National Public Finance Guarantee Corp. and Assured Guaranty have more than $350 million in exposure to Stockton's debt and are contesting the city's plan to restructure its finances through bankruptcy court. Read more:
http://www.reuters.com/article/2013/02/27/stockton-bankruptcy-idUSL1N0B…
In related news, Stockton, Calif., said yesterday that it had reached a deal on $21.6 million in debt payments with Ambac Assurance Corp. just ahead of a court hearing on its eligibility for municipal bankruptcy protection, Reuters reported yesterday. Ambac is the insurer for certificates of participations that Stockton issued in 2003 to finance housing projects. The agreement puts "a cap on the amount of money that could be paid each year out of the city's General Fund, provides for use of the reserve fund to pay some of the debt obligation and, if necessary, extends the term of repayment," the city said. The agreement allows Stockton to maintain essential public services such as the police station, fire stations and a library. Read more:
http://www.reuters.com/article/2013/02/26/usa-stockton-ambac-idUSL1N0BQ…