RI City Gets Green Light For Ch. 9 Plan

Law360, New York (September 6, 2012, 6:13 PM EDT) -- A bankruptcy judge on Thursday paved the way for Central Falls, R.I., to exit Chapter 9 bankruptcy, approving a five-year restructuring plan that would stabilize the city's finances through a mix of cuts to retiree pensions and increases in taxes.

U.S. Bankruptcy Judge Frank J. Bailey confirmed the plan for the 19,000-person city, which filed for bankruptcy in August to revamp its pension obligations after tax increases and austerity measures failed to resolve millions of dollars in debt.

The plan leaves untouched approximately $27 million in...
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