Reuters: U.S.: Court lets Stockton, California cut retiree health care

Reuters: U.S. Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Court lets Stockton, California cut retiree health care Jul 28th 2012, 00:41 Tweet Share this Email Print Related News Stockton made scant headway in pre-bankruptcy talks Sat, Jul 21 2012 San Bernardino third California city to seek bankruptcy Wed, Jul 11 2012 Crumbling sidewalks and shuttered businesses line a downtown street in Stockton, California, June 27, 2012. Credit: Reuters/Kevin Bartram By Jim Christie and Peter Henderson SAN FRANCISCO | Fri Jul 27, 2012 8:41pm EDT SAN FRANCISCO (Reuters) - A federal bankruptcy judge on Friday cleared the way for Stockton, California to cut health care benefits for retirees while it is in bankruptcy proceedings. Stockton is seeking Chapter 9 protection from its creditors and said that it would cut retiree health benefits while it reorganizes. Retired employees sued to stop those cuts. Judge Christopher Klein on Friday issued a temporary order denying the bid to stop the benefit cuts, and he said a formal decision was on its way. Stockton's attorneys had argued that bankruptcy law gave the city wide latitude on how to spend its revenue while it prepares a plan to restructure its finances. "For the reasons explained in the forthcoming decision of this court, the Application for Temporary Restraining Order and Preliminary Injunction or in the Alternative for Relief from Stay is DENIED," Klein wrote. "A further order will be entered contemporaneous with the formal decision," the temporary order said. The case in U.S. Bankruptcy Court, Eastern District of California, is an adversary proceeding, 12-02302, associated with the main bankruptcy case, 12-32118. (Editing by Carol Bishopric) Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions