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Judge affirms Central Falls, R.I. bankruptcy plan
September 6, 2012 / 5:55 PM / in 5 years

Judge affirms Central Falls, R.I. bankruptcy plan

Sept 6 (Reuters) - 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 bankruptcies.

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.

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