A major investment firm is challenging a court-approved bankruptcy plan for the California city of Stockton.
Franklin Templeton Investments of San Mateo filed its appeal Wednesday in U.S. bankruptcy court in Sacramento.
It came after Stockton officials successfully negotiated a plan to eliminate more than $2 billion in long-term debt obligations without cutting the city's pension obligations. A judge approved the plan last month.
Franklin Templeton said the city should have cut employee pensions rather than ask Franklin Templeton to walk away from the $32.5 million the city owed the firm.
Stockton was the nation's largest city in bankruptcy until Detroit filed bankruptcy last year.