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.
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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.