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Update 2- Stockton may begin bankruptcy process immediately, city official says Apr 7, 2025 — Stockton, California city officials are exploring bankruptcy after receiving a petition from the city's bondholders that would make filing within the next ten days. It follows a recommendation in a hearing last week that city officials consider bankruptcy.  Update- Stockton approves bankruptcy for city's debt after bondholders refuse to approve bankruptcy Apr 4, 2025 — Stockton city officials have begun meeting with the city's bondholders to discuss bankruptcy procedures, even though a judge approved a proposal by the city to seek relief from creditors last week. U.S. District Judge Charles Breyer, however, ruled against it Wednesday, citing the “unusual” circumstances of what he declared were “unique” financial circumstances, according to an official.  Update- Stockton City Attorney David McKeown tells the Stockton Record he is disappointed by the judge's decision to deny bail to several Stockton officials involved in the Stockton City Attorney's Office. Stockton city officials are considering filing bankruptcy in order to avoid a court battle, according to city officials.  City Attorney David McKeown said he believes a bankruptcy motion is appropriate as city officials work to navigate an out-of-court settlement with bondholders, who have threatened to strike down the city's bankruptcy motion. “I think it might be difficult to settle this if they don't know what the situation is,” McKeown said. “But I think it's in the city's best interests.”  If the city were to file bankruptcy, it would mark the first time the nation's tenth largest city filed for such relief. The city owes 2 million. City Attorney David McKeown said his office was seeking to settle its debt through court. Read Stockton city attorney's motion to file for Chapter 9 bankruptcy. City Attorney David McKeown filed a motion Tuesday to file Stockton Chapter 9, or nonbankruptcy, on March 25. Mayor Carmen Yulia Cruz has already asked the state attorney general to begin criminal civil forfeiture proceedings against several city employees involved with the city's financial mess. The city in January filed for chapter 9 bankruptcy, which it believes will allow the city to reduce or eliminate its 2million in debt. The filing came after bondholders rejected a “deferred payment plan” that would have paid 500,000 a month over six months.

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