Assured Guaranty of New York has the dubious honor of insuring $161 million of Stockton’s bonds. They have announced their plans to fight the bankruptcy plan that the city has filed, asserting that the city has not done enough to avoid bankruptcy. The company has an exposure of about $60 billion throughout California with a set-aside of about $13 billion to cover possible losses.
The city formally filed for Chapter 9 on Thursday.
The city asserts that they have liabilities of about $500 million to $1 billion total, and assets of a bit more than $1 billion. The city owes CalPers $147 million. Wells Fargo is the trustee of bond obligations running about $258 million.
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