Rolling the Dice

July 17, 2012 – In The News
The Stockton Record

The city of Stockton, California’s aging sewer plant may force the bankrupt municipality to ask Wall Street for another loan. The Stockton City Council learned last week that the cost to repair the sewer plant is $156 million.

Michael A. Sweet, a partner and member of the firm’s Financial Restructuring and Bankruptcy department, spoke to the Stockton Record about this issue.

"This is the kind of thing that makes Wall Street shudder," Sweet said.

"If the city succeeds in impairing the bonds through this Chapter 9 bankruptcy, it could have extraordinary reverberations on the municipal bond market."