SACRAMENTO – A Federal bankruptcy judge ruled Monday that Stockton, Calif. is eligible for Chapter 9 protection, rejecting the objections of bond market creditors.

U.S. bankruptcy Judge Christopher Klein said the city met all of the requirements of the Federal code to enter bankruptcy, cutting down the main arguments the so-called capital market creditors made during a three-day trial, which included that Stockton did not negotiate in good faith or wasn’t insolvent when it filed its petition.

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