04/02/2013 09:15 am ET

California Bankruptcies May Offer Detroit Lessons

Lansing — The California city of Stockton became the nation's largest municipality to enter bankruptcy Monday in a case being closely followed in Detroit to see how retirees and creditors make out.

U.S. Bankruptcy Judge Christopher Klein issued the bankruptcy protection declaration over the objections of the city's bondholders, who challenged Stockton's eligibility for bankruptcy because the city has continued to make its pension payments and not paying other creditors.

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