Stockton begins Consideration of Lease Agreements, One Component of Plan of AdjustmentJuly 17, 2013 – In The News
Michael Sweet was quoted in the Debtwire article "Stockton begins Consideration of Lease Agreements, One Component of Plan of Adjustment." While the full text can be found in the July 17, 2013, issue of Debtwire, a synopsis is noted below.
Stockton has requested a 90-day extension of the period in which it must decide whether to assume or reject various leases, in order to negotiate further with creditors, saying forcing those decisions now “would stand in the way of negotiations.”
Michael Sweet, who suspects the city may be mulling the lease issue in a broader context, said “If they’re formulating a plan that will provide some way to utilize those properties and make them part of the package, they’ll want to see that go hand in hand with the plan.”
According to Sweet, the adjustment plan has so many moving parts, that it doesn’t make sense to finalize decisions on singular small components such as the lease agreements.