FRESNO, Calif. - Stockton, the California city with the nation's second-highest foreclosure rate, is facing a moment of decision on whether to become the biggest city to file for bankruptcy, as a deadline for talks between the city and its creditors approached late Monday.
City officials are still hoping to reach a deal that would restructure millions of dollars of debt under a new state mediation law designed to help municipalities avoid bankruptcy, City Manager Bob Deis said.
On some nights, negotiations with the 18 creditors have stretched past midnight and remain confidential. But Deis said that to avoid bankruptcy, any deal would have to result in sufficient savings to make the city solvent.
