Union Debts Drive RI City Into Ch. 9 Bankruptcy

Law360, New York (August 1, 2011, 2:42 PM EDT) -- Central Falls, R.I., filed for Chapter 9 bankruptcy on Monday to revamp its pension obligations after tax increases and austerity measures failed to restore the city to solvency.

A city of 18,000 residents, Central Falls has been under state control for a year, but determined that it could not solve its debt crisis without taking the extraordinary step of entering municipal bankruptcy and rejecting the collective bargaining agreements with its workforce.

“Simply stated, the city cannot restore balance to its budget unless it restructures its labor...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.