SAN FRANCISCO, Sept 27 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
The draft plan provided no details on the potential
settlement. A spokesman for Assured declined to comment.