Sept 6 Central Falls, Rhode Island, took a big
step toward exiting bankruptcy on Thursday when a judge signed
off on a plan that balances the impoverished city's budget for
the next five years by hiking taxes, cutting employees and
pensions and revising labor contracts.
The case has garnered attention for its treatment of the
city's bondholders, who remain unscathed while pensioners took a
huge hit, in contrast with some other recent U.S. municipal
Judge Frank Bailey confirmed the Chapter 9 debt adjustment
plan in U.S. Bankruptcy Court for the District of Rhode Island.
No creditors objected to the plan, and only 2 of 237 creditors
eligible to vote on the plan cast ballots against it.