By Dale Kasler
Published: Thursday, Aug. 9, 2012 – 3:38 pm
Taking a swipe at CalPERS and the millions spent on public employee pensions, two firms owed millions by the city of Stockton are challenging the legitimacy of the city’s bankruptcy filing.
In papers filed in U.S. Bankruptcy Court in Sacramento, the two firms complained that they’re about to get clobbered in Stockton’s proposed debt restructuring, while Stockton is continuing to pay millions each year to CalPERS for employee retirement plans.
The challenges, by National Public Finance Guarantee Corp. and Assured Guaranty Corp., make it increasingly likely that Stockton could be the scene of an epic legal showdown over whether pension promises made to public employees can be broken.
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