SACRAMENTO - Vallejo, Calif., and Union Bank of California are not close to an agreement to restructure the city's debt, according to testimony a bank official gave in bankruptcy court late last week.

Finance director Robert Stout told the Vallejo City Council in June that he thought the bank and the letter of credit provider would agree "very soon" to restructure the city's certificates of participation and reduce the penalty rate Vallejo owes on debt tendered to Union Bank.

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.