Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

13 of 15
BACKNEXT
Vallejo, Calif.: Like state, like city
Vallejo, Calif.: Like state, like city
The town on San Pablo Bay just north of San Francisco filed bankruptcy as plunging property taxes crippled the town's coffers and left the city unable to make-good on union labor contracts.

A bit more than a year ago, the town of Vallejo, Calif., filed for Chapter 9 bankruptcy, and the city is still working to negotiate with labor unions, in particular the fire and police departments. Vallejo had to file for Chapter 9 bankruptcy -- not Chapter 11, as corporations do -- because it does not have the option to restructure its debt, as corporations do with a Chapter 11 filing.

A revolving door of city leaders hasn't helped the town manage the negotiations, and there is no timeline for when Vallejo expects to exit bankruptcy.

Home to just shy of 120,000 people, Vallejo was established in 1844 as a shipping center, but the Mare Island Naval Shipyard was shut down in 1996. The town is also home to one of Six Flags more successful theme parks, Discovery Kingdom.

NEXT: Lear hits the brakes

Last updated September 25 2009: 2:55 PM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
The stock market's wild week in 6 pictures It was the wildest week in stocks in recent memory. Here's photos and CNNMoney's tweets of reactions to the panicked selling on Monday and Tuesday, which gave way to a mad buying scramble on Wednesday and Thursday. And then...a selloff on Friday again. More
How New Orleans is learning to live with water After Hurricane Katrina, the city of New Orleans had to reinvent the way it manages water and protects itself from future storms. More
Your degree will earn you the most from these colleges Art majors can make big bucks, too. Find out which school has the highest paid grads in your major. More

Special Offer