Stockton, Calif., faces midnight deadline to avert bankruptcy

Stockton, Calif., faces midnight deadline to avert bankruptcy
By Jim Christie
SAN FRANCISCO, June 25 | Tue Jun 26, 2012 2:55am IST

(Reuters) – Stockton, California was at risk on Monday of becoming the largest U.S. city ever to file for bankruptcy as the clock ticked down toward the midnight deadline of talks with creditors.

If Stockton, home to a population of 292,000 about 85 miles east of San Francisco, fails to win concessions in the talks to close a $26 million shortfall for the fiscal year beginning on July 1, City Manager Bob Deis will soon seek protection from creditors with a rare Chapter 9 bankruptcy filing.

On Tuesday evening the city council will vote on a so-called pendency plan budget crafted by Deis to guide the city’s finances during bankruptcy proceedings.

https://in.reuters.com/article/2012/06/25/economy-stockton-idINL2E8HP8Z720120625