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Creditors of Stockton Fight Funding of Pensions While in Bankruptcy
The New York Times; subscription may be required
Aug. 24, 2012
"Creditors of the city of Stockton, Calif., are mounting a challenge against a popular belief: that public workers' pensions are impervious to cutbacks even when a city goes bankrupt. They are arguing that Stockton, which has stopped paying interest and principal on its bonds, is not treating its bankruptcy creditors equitably as is required under federal law because it is still funding the pensions of its workers."
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