Bankruptcy Article - negotiate with unions and debtors for...

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Ashley Paradis BUA 220-0001 April 3, 2012 Chapter 14 Bankruptcy Bankruptcy Article SUMMARY: A California City is on the brink of bankruptcy. If Stockton California declares bankruptcy it would be the largest city in the nation to ever to so. The attempts to cut the budget have been seen a less than successful. The city has already cut back municipal staff, which includes the Police and Fire Departments; thus crime has been on the rise: 58 murders occurred last year, an all-time high for the city. Along with high crime rates, Stockton has also experienced one of the highest foreclosure rates in the country. It is important to note that during better times Stockton spent a considerable amount with plans on expanding and refurbishing the city; their aggressive spending may be of partial cause to the position they are in now. Stockton is beginning mediation in hopes that they can avoid bankruptcy. A third party mediator will help
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Unformatted text preview: negotiate with unions and debtors for 90 days before declaring Chapter 9 bankruptcy. OPINION: It looks to be the inevitable that Stockton California will declare bankruptcy, but I think city officials/management brought the city to this position. Even though the economy is bad, and mostly to blame for the foreclosures, I think the city should have been more cautious and conservative about expanding and refurbishing during such economic times. More importantly, they should have been cutting back the budget for refurbishing, not positions for police and firemen. Like many critics pointed out in the article, this is just a case of bad management. A high risk gamble, during bad economic times will probably lead to the largest city to declare bankruptcy the nation has ever seen....
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This note was uploaded on 04/03/2012 for the course ENG 317 taught by Professor Alexlee during the Spring '12 term at University of Maine Orono .

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