Stockton mayor: We are on the verge of bankruptcy | News

STOCKTON (AP) - The mayor of Stockton said the city
appears to be on the verge of becoming the largest U.S. city to
file for bankruptcy.

Mayor Ann Johnston said on Tuesday that she did not believe a settlement had been reached in the city's negotiations with its creditors, a step that could have helped Stockton avoid bankruptcy.

Johnston said a formal bankruptcy filing now appears likely.
City officials did not immediately return a request for comment
from The Associated Press about the mayor's remarks.

City spokeswoman Connie Cochran has said the negotiations are confidential, and nothing will be announced until the City Council meeting Tuesday night.

The Council is scheduled to decide whether to adopt a special
budget to close Stockton's projected $26 million deficit in case
bankruptcy protection is sought.

A formal bankruptcy filing could then come as soon as Wednesday.

STOCKTON BANKRUPTCY HISTORY:

Stockton to pursue bankruptcy?

Councilman opposes Stockton bankruptcy move

Stockton possibly follows in Vallejo's footsteps

Official: Bad money moves, bad luck got Stockton in trouble

Moody's downgrades Stockton's credit; police union says don't file for bankruptcy

Former Stockton city manager disputes claims

City council vote could put Stockton on bankruptcy path

Stockton City Council considers insolvency steps

Bankruptcy decision looms for Stockton next week

Stockton City Council approves contingency plan

Bond downgrade doesn't immediately affect Stockton

If bankruptcy declared, Stockton promises to pay some bills