Creditors blast Stockton in court as they fight to avert bankruptcy filing

From The Sacramento Bee:

Wall Street creditors Monday sought to block the largest municipal bankruptcy in U.S. history, arguing in federal court that the city of Stockton improperly claimed insolvency while refusing to cut its massive pension obligations.

As U.S. Bankruptcy Judge Christopher Klein began a four-day trial in Sacramento to determine whether Stockton should be allowed to seek Chapter 9 municipal bankruptcy protection, creditors ripped the city, saying it was wrongly sticking them with the bill for its fiscal ineptitude.

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