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Stockton to vote on spending $1.5M more on bankruptcy filings

4:24 PM, Sep 11, 2012   |    comments
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STOCKTON, CA - Stockton City Council plans to vote Tuesday night on whether to approve spending an additional $1.5 million on bankruptcy filing.

City spokesperson Connie Cochran said this is the first time since the city entered bankruptcy court that the cost has increased.

Under the city's Pendency Plan, which was approved by the council on June 26 and filed with the court, the stated cost of $3.5 million was an initial estimate for the city's general fund bankruptcy expense.

Cochran said the city's bankruptcy is being challenged by creditors and the bankruptcy court judge ordered a new mediation between the parties, which is driving up the bankruptcy cost.

The city anticipates the ordered new mediation, run by an Oregon bankruptcy judge Elizabeth Perris, will save the city money in the long run, Cochran said.

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