Assured’s attorneys objected to Stockton’s bankruptcy from day one. But the company alleges that new evidence from depositions and the discovery process, along with reports from independent experts, “all confirm that the City of Stockton cannot prove its insolvency under the law, has not satisfied the negotiation requirement required under the Bankruptcy Code, and has not filed its petition in ‘good faith.’” To what end? Assured argues that the city “hopes to use the Chapter 9 plan process to cram down a non-consensual plan on Capital Market Creditors in order to free up cash to fund above-market labor and pension costs, while refusing to consider—much less implement—additional sources of revenue and much-needed expenditure reductions.”
via Stockton’s Moral Deficit by Steven Greenhut – City Journal.