Judge Christpher Klein is poised to grant the City of Stockton its request for bankruptcy, saying the city was “insolvent by any measure” when it suspended 2 million dollars in bond payments to creditors.
He also ruled that creditors did not negotiate in good faith in working out a payment plan.
Klein then refused to dismiss the bankruptcy case, allowing for the city to formulate a plan to make limited payments to creditors.
Lonnie Wong is at the courthouse and is continuing to follow the story. Keep checking back for updates.