Stockton becomes most populous bankrupt American city
April 2 , 2013
A judge on Monday approved the Californian city of Stockton's bankruptcy filing, making it the most populous city in the United States to ever to enter bankruptcy protection.
The judge said without bankruptcy protection, Stockton would not be able to provide basic government services.
The city, with a population of 290,000, is located 90 miles east of San Francisco. It saw its tax base plunge following the U.S. housing market crash.
The ruling will grant Stockton protection from creditors, who were against the filing, while it negotiates its debt repayment.
Stockton first filed for bankruptcy last June after failing to reach an agreement with its creditors.
The city’s largest debt of $900 million is owed to the California Public Employees' Retirement System to cover pension promises.
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