Stockton is going to have to spend four days in March in trial, proving that it can proceed with its bankruptcy case, according to a ruling issued by a bankruptcy judge.
The trial, set to begin March 25, will pit powerful Wall Street interests against those of CalPERS, who some complain is not being treated similarly to the banks that backed city bonds and borrowing. Stockton has already agreed to continue making $29 million in payments to CalPERS.
When it declared bankruptcy and suspended payments to some creditors, the City lacked sufficient funds to fulfill all of its obligations and pay its employees. It had already cut its police force by 25 percent and had reduced other programs “to the bone.”
However, the courtroom drama will determine the fate of the City, its employees, and its creditors.
Read the full article at the Sacramento Bee.