SACRAMENTO, Calif. Feb 26 The federal judge
overseeing the municipal bankruptcy case of Stockton, California
on Tuesday ordered a trial next month over the issue of the
city's eligibility to pursue bankruptcy protection from its
Chief Bankruptcy Judge Christopher Klein said Stockton and
creditors contesting its bankruptcy filing could present
evidence and witnesses on the eligibility issue during a
four-day trial during the week beginning on March 25.
Stockton, a city of 300,000 in California's Central Valley,
last year became the biggest U.S. city to file for bankruptcy.
Bond insurers National Public Finance Guarantee Corp and
Assured Guaranty have more than $350 million in exposure to
Stockton's debt and are contesting the city's plan to
restructure its finances through bankruptcy court.