SAN FRANCISCO — A U.S. bankruptcy court has ruled that Vallejo, Calif., is insolvent.

Vallejo, a city of 117,000 about 30 miles northeast of San Francisco, filed for protection from creditors under Chapter 9 of the federal bankruptcy code on May 23, becoming the biggest municipal bankruptcy since Orange County, Calif., in 1994.  The city began the current fiscal year with no reserves and faced a $17 million deficit this year.

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