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Stockton Bankruptcy Plan In Judge's Hands
All but one of Stockton's creditors have agreed to the city's bankruptcy exit plan. The lone holdout is trying to convince a judge to reject the plan.
The plan includes 100-percent payment of California Public Employee's Retirement System pensions and smaller percentages to about 20 other creditors.
Stockton's bankruptcy exitplan includes full payment of the money the city owes the California Public Employees Retirement System and smaller percentages of about 20 other creditors' debts.
The city and all but one of its creditors -Franklin Templeton- agreed to the bankruptcy payment plan. Franklin is challenging the plan in court.
Marc Levinson is an attorney hired by the city. He says the plan is fair.
"All I can say is all the other creditors reached a deal and we couldn't reach a deal with Franklin. It takes two to tango. You can't force a deal on somebody. We were unable to reach a deal."
Franklin Templeton says it should receive more than 1-percent of the company's unsecured debt and that the City could pay less of its pension obligations.
City employees unions and retirees like Anthony Delgado support the city's plan and are worried it might be changed.
"It's one of those situations where my future is not in my own hands I am at the liberty of the court."
Levinson says many companies that voted for the plan are owed much more than Franklin Templeton's $32.5 million.
"Other creditors assured guarantee is upwards of $125 million, $165 million, $175 million. MPFG is $100 million. AMBAC is at or about $12 or $15 million. The retiree health claims are up at $545 million and there's miscellaneous other millions of dollars floating around."
The judge is expected to decide whether to accept the plan by October 30.
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