Stockton, Last Creditor To Face Off in Final HearingMay 8, 2014 – In The News
Michael A. Sweet was quoted in The Bond Buyer article, "Stockton, Last Creditor To Face Off in Final Hearing." Full text can be found in the May 8, 2014, issue, but a synopsis is noted below.
The city of Stockton could receive approval for its plan of adjustment as soon as next week and begin the process of emerging from Chapter 9 bankruptcy.
One issue that is likely to come up in the hearing will be the city’s treatment of its obligations for the California Public Employees’ Retirement System.
"If pensions are somehow put into play, then I think this all of a sudden gets very interesting for people," said Michael Sweet.
"The concern that I would think people are going to have is in five years are they going to be looking back saying we didn't solve the problem because we didn't address the pensions," Sweet said. "So it's a question of whether or not the analysis they've done is sufficient to satisfy that they're not going to be back in the same position a few years down the road."