08
Nov
2013

Stockton sales tax plan set to end bankruptcy, pensions spared

Categories: California Developments
Print Friendly

Reuters by Jim Christie, November 4, 2013

When Stockton, California, filed for bankruptcy last year, the stage was set for a precedent-setting battle with Wall Street over whether bondholders or retired public employees should pay the price when a local government goes broke.

But under the terms of recent settlements, bond insurers who are backing about $240 million in city debt will accept a “haircut” of as much as 50 percent on some bonds. Retirees will keep their full pensions, though 1,100 of them will lose their retiree health insurance.

link to full article

Archive

  • +2017 (1)
  • +2016 (25)
  • +2015 (60)
  • +2014 (41)
  • +2013 (28)
  • +2012 (56)
  • +2011 (43)
  • +2009 (1)
  • +2004 (2)