Wednesday, 29 October 2014

Stockton's Bankruptcy Ruling Is Tomorrow: I expect the judge will reject Stockton's plan

According to today’s Stockton Record article, it appears that there is no imminent settlement between the City of Stockton and Franklin Investment.  In addition, the City spokesman said they have not amended their plan that pays Franklin less than 1% on their more than $30 million in unsecured debt.

Thus, I expect the Judge will reject Stockton’s plan, as I discussed in my earlier post reacting to the October 1st ruling.

It seems to me that Judge Klein has been doing everything he can to nudge the sides to settle over the past few months.  I believe delaying the confirmation ruling from October 1 to October 30 was to give them one last chance for a deal or for Stockton to come forward with an amended plan.

I hope I am wrong about this.

About the Author

Ethan Jacob

Author & Editor

I am Ethan Jacob Executive Director of the Center for Business and Policy Research at the University of the Pacific, where I have a joint faculty appointment in the Eberhardt School of Business and the Public Policy Program in the McGeorge School of Law..

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