Two Franklin Templeton funds had until Monday to continue its appeal of the order confirming the city’s Chapter 9 bankruptcy plan of adjustment, but it chose not to.
The United States Bankruptcy Appellate Panel of the Ninth Circuit issued an opinion on Dec. 11 that dismissed Franklin’s appeal on most grounds for appeal and affirmed the rulings of the bankruptcy court on the remaining grounds.
Among its findings, the panel ruled that the city’s plan was not unfairly discriminatory toward Franklin, that the plan had been substantially consummated, and that “reversing the confirmation order would knock the props out from under the plan and would leave the bankruptcy court with an unmanageable situation on remand.”
The city exited bankruptcy on Feb. 25, 2015 with the Franklin appeal pending. The confirmation decision by Judge Christopher Klein was reviewed by a panel of three bankruptcy judges, the Bankruptcy Appellate Panel, and the panel heard arguments on Nov. 19, 2015. The panel issued its decision in less than a month, and dismissed portions of Franklin’s appeal and affirming the rest of Klein’s rulings.
“The city is pleased with the outcome of the bankruptcy court and BAP proceedings,” said Stockton City Manager Kurt Wilson. “Avoiding the expense and resource demands of yet another appeal will allow the City to focus on continuing its upward trajectory and advancing the policy directives of the City Council.”