The Californian city of Stockton is set to become the largest US city to declare bankruptcy.
Mayor Ann Johnston told the city council which endorsed the move it was "the most difficult and heart-wrenching decision" they had ever faced.
Stockton to file for bankruptcy, will be largest U.S. city to fail
The Stockton City Council halts bond payments, slashes employee benefits and adopts an emergency budget as mediation ends. The Central Valley city becomes the largest in the U.S. to seek bankruptcy protection.