Posted: Nov 2, 2011 12:06 PM by Associated Press (BT)
VALLEJO, Calif. (AP) - Vallejo has finally emerged from bankruptcy.
A federal judge released the historic Northern California town from bankruptcy Tuesday, putting an end to Vallejo's three-year bout as one of the nation's first and largest bankrupt cities.
Located about 30 miles northeast of San Francisco, Vallejo was the original capital of California. The city of 120,000 filed for bankruptcy protection in 2008, facing large deficits and a revenue crisis.
Since then, the city has closed fire stations and cut funding to senior centers, libraries and public works to save money, and worked to find new sources of revenue. Declaring bankruptcy gave
the city protection from its creditors and allowed it to renegotiate contracts with employees, but The San Francisco Chronicle reports court proceedings also cost Vallejo $8 million in legal fees.
Information from: San Francisco Chronicle, http://www.sfgate.com
(Copyright 2011 by The Associated Press. All Rights Reserved.)
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