Stockton, Calif. and Assured Guaranty agree bankruptcy exit deal

Reuters

STOCKTON, Calif., Oct 3 (Reuters) - Stockton, California andbond insurer Assured Guaranty have reached an agreement torestructure more than $150 million of outstanding debt to helpthe city exit from bankruptcy, sources close to the deal said onThursday.

Under the terms of the agreement, Assured will takepossession of a city building and receive the revenue itgenerates to service about $35 million in outstanding bonds thatStockton had sold to acquire it.

Additionally, Assured has agreed to allow Stockton to makepayments on about $120 million in outstanding pension obligationbonds until 2052 from their original 2038 term.

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