By Stephen Church
Stockton, one of a growing number of California cities in financial collapse, said it asked bondholders and other lenders owed more than $300 million to take less than full repayment as part of an unsuccessful bid to avert the biggest ever bankruptcy filing by a U.S. city.
Under a proposal made public July 20, Stockton told unsecured bondholders owed about $124.3 million they would no longer receive any debt payments from the general fund, the main account used to pay for services like police and fire protection. Secured bondholders, who hold debt guaranteed by assets, were asked to accept smaller interest payments and a longer, 40-year repayment term.
Stockton Bankruptcy Court File