Judge in Stockton, Calif., bankruptcy says Franklin should only get $4 million

(Reuters) - The judge in the Stockton, California, bankruptcy ruled on Thursday that creditor Franklin Templeton will get just over $4 million from an original debt of $36 million. U.S. Federal Bankruptcy Judge Christopher Klein ruled on Franklin as he gave Stockton the green light to exit bankruptcy after more than two years in bankruptcy protection. Klein said he was not persuaded by Franklin's arguments that it should be paid between $6.12 million to $17.34 million under the city's bankruptcy exit plan. Referring to Franklin's payment under the exit plan, Franklin attorney James Johnston told Klein: "Obviously, we’re disappointed by your ruling. We will evaluate our next steps." (Reporting by Tim Reid; Editing by Bernard Orr)