Chapter 9 Bankruptcy
Bankruptcy Court Schedule
The Court will hold a Status Conference on June 12, 2013. Creditors and parties in interest are invited to attend the status conference but are not required to do so.
For information about the Court and the Court schedule, please view the Court web site listed under External Links below and view the Court calendar for Judge Christopher M. Klein.
Bankruptcy Court Notices
Periodically, the Bankruptcy Court will mail creditors and other interested parties notices of upcoming hearings and of other developments in the chapter 9 case. If you have questions about these notices, please contact the City of Stockton Public Information Officer at (209) 937-8827 or Connie.Cochran@stocktongov.com.
Stockton Bankruptcy Information
On June 28, 2012, the City of Stockton filed a petition for chapter 9 bankruptcy protection with the United States Bankruptcy Court, Eastern District of California, Sacramento, Case No. 2012-32118. Judge Christopher M. Klein ruled on Monday, April 1, 2013, approving the petition and providing bankruptcy relief for the City of Stockton General Fund.
A court reporter's transcript of the Judge's findings of fact and conclusions of law is provided below. The Judge will issue his written opinion in the coming weeks:
- April 1, 2013 - Transcript of Judge Christopher M. Klein ruling (54 page PDF file)
With the bankruptcy petition approved, the City will focus on continuing to work with creditors toward a Plan of Adjustment. The Plan of Adjustment, which must be confirmed by the court, confirms the terms and conditions of payment of debt with the limited financial resources available. The restructuring of debt and other City obligations is essential to restoring fiscal health and moving the City forward to a sustainable future.
The Stockton City Council approved a Pendency Plan on June 26, 2012. The Pendency Plan is essentially the budget and the financial plan that is followed for the day-to-day operations of the City while in bankruptcy. It identifies what expenditures will be reduced or suspended. The City will continue to pay employees, vendors and service providers. The focus of the City's plan is the restructuring of above market pay and benefits and unsustainable long term debt.
Majority of City's Budget Not Part of Bankruptcy
The majority of the City's budget is not impacted by the City's fiscal crisis. The total budget of $521 million includes $366 million in restricted funds, which cannot be used to resolve the General Fund crisis. The $155 million General Fund provides for services such as police, fire, libraries, parks maintenance and administrative functions. The Pendency Plan will protect these essential services for the safety and welfare of our citizens.
An Open Letter to the Community - Stockton's Bankruptcy
On July 24, 2012, the Stockton City Council approved an Open Letter to the Community regarding Stockton's Bankruptcy. The letter has been submitted by Mayor Ann Johnston on behalf of the City Council.
City AB 506 Restructuring Proposal
- City of Stockton Restructuring Proposal Summary (3 pages)
- News Release - City of Stockton AB 506 Restructuring Proposal Released (6 pages)
- Stockton AB 506 Restructuring Proposal (1 of 3 files) (79 pages)
- Stockton AB 506 Restructuring Proposal (2 of 3 files) (667 pages)
- Stockton AB 506 Restructuring Proposal (3 of 3 files) (44 pages)
- Stockton AB 506 Mediation Sessions (6 pages)
- Stockton AB 506 Mediation Outcome (2 pages)
City Pendency Plan
- June 26, 2012 - Council Agenda Item 16.03
This is a 148 page PDF file.
- Employee Letter - October 1, 2012, City Bankruptcy Update and State Approved pension Changes
- April 1, 2013 - Judge Rules Stockton Chapter 9 Eligible
- Petition for bankruptcy relief approved
- March 27, 2013 - Stockton Chapter 9 Eligibility Trial Concludes
- Chief Judge Christopher M. Klein decision Monday, April 1, 2013, 10a
- March 26, 2013 - Stockton Chapter 9 Eligibility Trial Update
- March 25, 2013 - Stockton Chapter 9 Eligibility Trial Begins
- February 26, 2013 - News Release - First Agreement with Capital Markets Creditor, City and Ambac
- December 14, 2012 - News Release - Objections Challenge Stockton's Bankruptcy Eligibility
- October 3, 2012 - Letter to the Editor, The Bond Buyer - Stockton's Restricted Funds Healthy
- September 27, 2012 - Oped, Wall Street Journal - A Message From the City that Went Bankrupt
- August 6, 2012 - News Release - Bankruptcy Judge Ruling Retiree Medical Premiums
- July 24, 2012 - News Release - Stockton's Bankruptcy - An Open Letter to the Community
- July 24, 2012 - News Release - Stockton Approves Agreements with Six Labor Groups
- July 20, 2012 - News Release - City of Stockton AB 506 Restructuring Proposal Released
- June 28, 2012 - News Release, Stockton Files for Chapter 9 Bankruptcy Protection
- June 26, 2012 - News Release, Stockton City Council Adopts Pendency Plan
- Retiree Letter - June 27, 2012, Retiree Health Care Letter
- Retiree Letter - July 16, 2012, Information and resources for retirees receiving medical benefits
- Vendors and Service Providers Letter- June 25, 2012, Pendency Plan
The State of California Legislative Analyst's Office (LAO) has published questions and answers about Local Government Bankruptcy in California. A link to the report is available under External Links below.
If you have questions, concerns, comments or suggestions, please submit your request in writing by completing an Ask Stockton service request form.
This City of Stockton web page last reviewed on --- 4/30/2013