Stockton’s Court Date Arrives

March 24, 2013 – In The News
Stockton Record

City officials on Monday will embark on a historic trial, laying bare Stockton's ailing finances and arguing before a federal judge that they did everything possible before turning to the option of last resort - filing for Chapter 9 bankruptcy protection.

Michael Sweet has closely monitored the city's case and said he's not ready to declare a winner, but he believes Stockton has laid a good foundation for eligibility.

"The scales are weighing toward the city prevailing," Sweet said. "But a lot can happen in a four-day trial."

Sweet said he believes that Stockton is in a good position to prevail at trial because before filing bankruptcy, the city spent three months with creditors in confidential mediation under AB506.

"I think it's kind of hard to say that the city didn't negotiate in good faith," he said. "Let's be clear. The judge is doing his job. He's not just going through the motions."