Stockton's council has authorized a plan that will allow the Californian city to exit bankruptcy protection after it agreed with bond insurer Assured Guaranty (AGO) to restructure over $150M in loans.
Stockton now has deals with all but three of its 19 major creditors, including with all the relevant bond insurers. The city hopes to file the plan to exit bankruptcy early next week and then leave Chapter 9 protection in around six months.
The deal with Assured is dependent on court approval and on voters backing an increase in sales tax. (Previous)