Some described the AB 506 process as death by a thousand meetings. If Stockton officials have their way, some of the details of the closed-door process will be revealed to the public.
A request will be filed with the city’s bankruptcy judge to allow some of the files from the 90-day mediation process to be released to the public, giving greater insight into the process that failed to avert bankruptcy.
The request for greater access came after one of the city’s largest creditors issued a scathing statement lambasting the city for failing to fulfill its duties and make payments on its debts. The city has said in the past that it was forced to choose between devastating cuts or debt service, and further cuts would lead to anarchy.
From the Los Angeles Times:
Hints of what happened during three months of tense negotiations between the city of Stockton and its creditors as the city struggled to avoid bankruptcy are beginning to trickle out — and the city is eager to reveal more details.
Stockton’s city manager, Bob Deis, told the Stockton Record that the city would ask a bankruptcy judge to make records from the three-month confidential mediation public to show how Wall Street attorneys behaved behind closed doors.
Read the full article here.