VALLEJO, Calif. — Officials said Thursday that Vallejo is nearing a deal with its largest creditor and is looking at curbing employee benefits as it struggles to climb out of bankruptcy.

City manager Phil Batchelor said during a news conference that the California city is close to an agreement with Union Bank, which holds $50 million of its debt, and is also considering further cuts in employee benefits, with pensions as a main target.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.