SACRAMENTO — Vallejo, Calif., is closing in on settlements with creditors that would smooth its escape from bankruptcy, according to its attorney.

Marc Levinson, the city’s bankruptcy lawyer from Orrick, Herrington & Sutcliffe LLP, told U.S. bankruptcy Judge Michael McManus during a hearing here Monday that negotiations with creditors are “headed in the right direction” and deals could reached before the next hearing at the end of the month.

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