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 10 best states for retirees It might be worth moving to a new place to find your dream retirement home. Check out these 10 states. More
A look at Sears through the years Now Sears has officially said its business has an uncertain future, here's a look at photographs that documents the store's rich history. More
Coolest hotel bars for business travelers in 2017 CNNMoney asked a high-end concierge service for routine business travelers what hotel bars they'd recommend in 4 major U.S. cities. Here are the best spots. More

Special Offer