Stockton to Ask Judge to Lift Gag Order on Pre-Bankruptcy Talks
Hints of what happened during three months of tense negotiations between the city of Stockton and its creditors as the city struggled to avoid bankruptcy are beginning to trickle out -- and the city is eager to reveal more details, the Los Angeles Times reported yesterday. Stockton's city manager, Bob Deis, told the Stockton Record that the city would ask a bankruptcy judge to make records from the three-month confidential mediation public to show how Wall Street attorneys behaved behind closed doors. After failing to reach compromises with some of its largest debt-holders, Stockton on June 28 became the nation's largest city to have ever filed for bankruptcy protection. New York-based Assured Guaranty, which insures $161 million worth of debt the city has stopped paying down, issued a scathing statement criticizing the city for seeking bankruptcy protection, accusing it of shirking its debt.