The report goes on to note--quite correctly--that the court has an independent obligation to find a city's plan is "feasible" before confirming it. And feasibility remains the nub of Stockton's confirmation battle. For more about feasibility read my article Municipal Bankruptcy: When Doing Less Is Doing Best (download here).
For what it's worth, I believe Judge Klein will ultimately find that Stockton's plan is feasible. Without a stakeholder leading the feasibility charge, I don't see a judge taking up that cudgel and administering a beatdown on his own. Yet even if Stockton's plan is confirmed, stay tuned to see if the city runs back to bankruptcy court within a decade.