At the end of the fifth day of Stockton’s bankruptcy trial yesterday, Judge Christopher Klein set a July 8 court date at which he will determine his valuation of the collateral in the city’s dispute with Franklin Templeton Investments. Klein also may announce a ruling on Stockton’s plan to reorganize its finances.
Here’s what Stockton attorney Marc Levinson had to say today via email in response to a question I sent him:
“Judge Klein’s decision to rule first on valuation made sense to both the City and Franklin because it will result in the plan being modified, and the modifications may result in the narrowing of the disputes over the new plan. I do not interpret Judge Klein’s approach as any indication of whether he is or is not inclined to confirm the plan or any indication of his views about pensions.”