Stockton, California, says has outlines of pension bond settlement

Reuters

SAN FRANCISCO, Sept 27 (Reuters) - Stockton, California,unveiled on Friday a draft plan for exiting from bankruptcy thatit said had the "outlines of a negotiated settlement" with bondinsurer Assured Guaranty over $124.3 million in outstandingpension obligation bonds.

"As this document was being finalized the City was innegotiations with this creditor and had developed the outlinesof a negotiated settlement," the plan said, adding that a draftterm sheet had not yet been reviewed by executive management atAssured.

The draft plan provided no details on the potentialsettlement. A spokesman for Assured declined to comment.

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