FRESNO, Calif. (AP) — 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.READ MORE: Multiple Big Rig Crash Closes I-80 Near Nevada State Line
The city has reached deals with all of its major creditors, except for Franklin Templeton Investments, which has taken Stockton to trial.READ MORE: Nevada County Preparing For Potential Flash Flooding
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.
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