Stockton, California, says has outlines of pension bond settlement
SAN FRANCISCO, Sept 27
SAN FRANCISCO, Sept 27 (Reuters) - Stockton, California, unveiled on Friday a draft plan for exiting from bankruptcy that it said had the "outlines of a negotiated settlement" with bond insurer Assured Guaranty over $124.3 million in outstanding pension obligation bonds.
"As this document was being finalized the City was in negotiations with this creditor and had developed the outlines of a negotiated settlement," the plan said, adding that a draft term sheet had not yet been reviewed by executive management at Assured.
The draft plan provided no details on the potential settlement. A spokesman for Assured declined to comment.