Stockton, Calif., became the largest city to file for bankruptcy in U.S. history yesterday after years of fiscal mismanagement and a housing market crash left it unable to pay its workers, pensioners and bondholders, Reuters reported. The filing by the city of 300,000 people followed three months of confidential talks with its creditors aimed at averting bankruptcy. Stockton, which officially declared insolvency and its desire to restructure its debt, also filed a separate list of its major unsecured creditors. The California Public Employees' Retirement System, which manages Stockton's pension plan, tops the list. The retirement system has a $147.5 million claim for unfunded pension costs. Other top creditors include investors holding $124.3 million of Stockton's pension obligation bonds, $40.4 million of the city's variable rate demand obligations, $35.1 million of the city's public facilities fees bonds and $31.6 million of the city's parking garage debt. Wells Fargo Bank NA is listed as the trustee for the investors.
