It is not a done deal. It is possible the city will come to a deal with its creditors and will stave off bankruptcy. It is also possible the sun will rise in the west tomorrow morning.
This could be the beginning of a growing rolling snowball. There are several municipalities in SoCal that are in similar shape.
I believe that this is just a precursor for the formerly great state of California, which could itself be facing insolvency at the end of this calendar year. That may be what it takes for our political ruling class to get their heads out of their butts and deal with the problem rather than apportioning blame.
Clicking here will link to a Stockton RECORD piece on this story.