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Stockton Bankruptcy Trial Begins

Stockton Bankruptcy Trial Begins
Posted Tuesday, May 13th 2014 @ 9am  by KFBK News - Scot Murdoch

The bankruptcy trial for the City of Stockton begins.  

Attorney for Franklin Templeton Investments James Johnston, argues that the city struck much more favorable deals with other creditors and that the city is making a slow recovery allowing it to pay off more of its debt.

Marc Levinson, an attorney for the city, argues that Franklin Templeton is a billion-dollar investment firm and its potential loss in Stockton amounts to a "rounding error."

Franklin Templeton Investments, which loaned Stockton $35-million, has refused a deal with the city, one which lawyers for the company say would only get the firm about a one cent on the dollar.

City attorneys are hoping that judge refuses the lawsuit and forces Franklin Templeton to take the deal.

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