Bankruptcy Judge Chris Klein recently issued his formal confirmation opinion in Stockton’s Chapter 9 bankruptcy case. While there were no real surprises, the opinion makes for entertaining reading given the Court’s more than serious conclusion that: …it is doubtful that CalPERS even has standing to defend the City pensions from modification, CalPERS has bullied its … Continue Reading
Last week Judge Klein approved Stockton, California’s plan of adjustment allowing the city to exit bankruptcy without addressing its largest liability – pensions. Stockton’s plan called for budget cuts, haircuts for bondholders, and a sales tax increase approved by voters last fall in reliance, in part, on the City’s promises to hire more police. While … Continue Reading
