The biggest share of the debt is held by companies that in 2007 insured nearly $165 million in pension bond obligations to allow the city a lower interest rate and create stability for investors. The city proposed repaying 17 cents on the dollar.

If Chapter 9 protection is approved, a federal bankruptcy judge would still have to decide whether Stockton's bankruptcy plan is fair or singles out some groups to bear more of the financial burden than others.

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Reach Tracie Cone: www.twitter.com/TConeAP

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