SAN FRANCISCO — Finance officials in Vallejo, Calif., which filed for Chapter 9 bankruptcy protection last month, told the City Council last week that they are close to an agreement with Union Bank of California to restructure outstanding variable-rate debt.

"We think we are going to be able to conclude that successfully in the very near future," finance director Robert Stout told the council in an update on the confidential negotiations. He declined through a spokeswoman to discuss the details of a deal, but he outlined the city's position to the council in broad terms.

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