The date of February 25, 2015 witnessed a new chapter in the life of the Stockton community. It was this day when the bankruptcy exit plan became effective. There were approximately $2 billion debts, long term debts and other monetary turbulence. The only solution which the inhabitants trusted on was filing of Chapter 9 under the bankruptcy law. There were other steps taken by the community along the line. So, there was fabrication of new labor agreements, novel settlement with retirees and making it work with the largest creditors.

However, the impact of the same on the bondholders seems devastating. There has been a weakening of the claims of the bondholders. So, in here the pensioners will be in the position to bask in a better financial sustainability as compared to the bond holders. This definitely came as a surprise to the general public as well as the bondholders. It is because, in accordance with the legal proceedings in the initial state, it is the pension which can be impaired in the bankruptcy cases. So basically the investors are forced to take less than they owed. This implies that Calpers does have to deal with the consequences associated with it.

sometimes

In fact, the situation should have been different. In accordance with the federal law the priority in case of filing of Chapter 9 bankruptcy should have landed towards secured creditors in a hassle free manner. Hence, it will be interesting to witness with regards to the future of similar chapter 9 filing of bankruptcies.

Related Posts
Declaring bankruptcy
Declaring bankruptcy is one of the many options a debtor can perform when he can no longer meet the terms of his financial obligations to his creditors. In the United ...
READ MORE
How to file for Chapter 11 bankruptcy?
The gorgeous $3.5 billion paradisiacal mega resort Baha Mar is in the news again. Since its construction initiated, there are travelers waiting for it to start. However, it seems this ...
READ MORE
Filing For Bankruptcy Due To Financial Difficulties
Should you file bankruptcy or not ? Send your case to bankruptcy lawyers for free consultation, Our online pool of lawyers helped many ( look below ) and help you ...
READ MORE
How to file for Bankruptcy ?
If you are one of such victim facing huge debt, and searching information desperately for the processes of "How to file for bankruptcy ? ", you are about to find ...
READ MORE
Stockton chapter 9 Bankruptcy
Just like the organization, companies and individual can declare themselves bankrupt, so does a municipality can. The basic difference lies in the chapter, which will be filed to handle the ...
READ MORE
Bankruptcy
Bankruptcy laws are made for the help of the people who can no longer pay their creditors get a chance to pay that is by liquidating assets or by creating ...
READ MORE
What is involved in filing for bankruptcy
People who are having problems paying their financial obligations sometimes consider bankruptcy to acquire comfort from selection initiatives, remove some or all of their financial obligations or rebuild their debt ...
READ MORE
Chapter 11 protection in favor of Molycorp Inc.
If a company or an organization is unable to repay its creditors or keep its business alive, the debtor under the norms and rules can file for the Chapter 11 ...
READ MORE
Chapter 7 Bankruptcy
If you go for Chapter 7 bankruptcy, you may have a lot or all of your debts canceled. On the other hand, you might need to sell some or all ...
READ MORE
How to deal with your business debts
Around 90 percent of businesses fail before they even reach ten years. And in this challenging economy, it would be normal if your business would dwindle down to failure. This ...
READ MORE
Declaring Bankruptcy
How to file for Chapter 11 bankruptcy?
Filing For Bankruptcy Due To Financial Difficulties
How to file for Bankruptcy ?
Stockton chapter 9 Bankruptcy
Bankruptcy
What is involved in filing for bankruptcy
Chapter 11 protection in favor of Molycorp Inc.
Chapter 7 Bankruptcy
How to deal with your business debts