Although a city of almost 300,000, Stockton is a place where many families have known one another for generations.
### latimes.com June 27, 2012 | 4:40 am
By Diana Marcum
Stockton bankruptcy will make history; residents reeling
Officials said Tuesday that Stockton would become the nation’s largest city to seek protection under the U.S. bankruptcy code. The city stopped making bond payments, and City Manager Bob Deis said he expected to file bankruptcy papers immediately. Stockton has been in negotiations with its creditors since late March under AB 506, a new California law requiring mediation before a municipality can file for reorganization of debt. It was the first use of the law, and policy analysts who watched its torturous and tedious progress have titled their report on it “Death by a Thousand Meetings.” Mediations ended Monday at midnight.
How Stockton found itself so mired in debt can be seen everywhere in the city’s core. There is a sparkling marina, high-rise hotel and promenade financed by credit in the mid-2000s, mere blocks from where mothers won’t let their children play in the yard because of violence.
Posted by Elizabeth Kerr