Scott Smith

A judge on Thursday approved a plan by Stockton, California, one of the largest U.S. cities to declare bankruptcy, allowing it to eliminate more than $2 billion in long-term debt payments without touching its massive pension obligations.

A judge on Thursday approved a plan by Stockton, California, one of the largest U.S. cities to declare bankruptcy, allowing it to eliminate more than $2 billion in long-term debt payments without touching its massive pension obligations.