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Latest Ruling Marks End Of Stockton's Bankruptcy Proceedings

Andrew Nixon / Capital Public Radio
 

Andrew Nixon / Capital Public Radio

The judge in Stockton's bankruptcy case has given final approval for the city to implement its restructuring plan.

The lone creditor who had asked for a delay was denied.

The City of Stockton owed Franklin Templeton Investments $35 million, but under the plan, Franklin will only receive  just over $4 million. 

The company is appealing the recovery plan and asked for a delay.  

But Judge Christopher Klein ruled more delays would only hurt the city and ordered the city's plan to move forward while Franklin pursues the appeal. 

Stockton Mayor Anthony Silva says after two years of bankruptcy, the city can start to restructure. 

"The City of Stockton should be able to emerge from bankruptcy and really ride the wave of economic success that we are starting to see signs of in the national economy," says Silva. 

Silva says the city will begin hiring more police officers and firefighters as it emerges from bankruptcy. 

 stocktonbankruptcy

Rich Ibarra

Contributing Central Valley/Foothills Reporter

As the Central Valley correspondent, Rich Ibarra covers San Joaquin, Stanislaus, and Merced counties, along with the foothill areas including Tuolumne and Calaveras counties. He covers politics, the economy and issues affecting the region.   Read Full Bio