FRESNO, Calif. – An attorney for the largest city in California to seek bankruptcy protection told a judge it has tried to reach a deal with its last major creditor, but the company is not budging.
Marc Levinson, an attorney for the city of Stockton, made the comments during opening statements Monday in a trial over Stockton’s plan to emerge from bankruptcy. The city is asking a judge to approve the plan that would reorganize more than $900 million in long-term debt.
The city has reached deals with all of its major creditors, except for Franklin Templeton Investments, which has taken Stockton to trial.
Franklin’s attorney, James Johnston, says the investment firm is being offered 1 cent on the dollar for a $35 million loan. It wants U.S. Bankruptcy Judge Christopher Klein to reject Stockton’s bankruptcy plan.