The city of Central Falls, RI filed for Chapter 9 bankruptcy relief a year ago when it could not pay its bills including payments to bondholders and employee pensions and insurance.  The bankruptcy judge praised the city for completing the Chapter 9 bankruptcy in “record time and record efficiency.”

However, the residents of Central Falls and its employees are the ones that will be paying heavily for the city’s poor financial decisions.  Under the plan, taxes will be increased, city jobs will be cut and payments to retired employees will be decreased in order to make sure that the bonds are paid.

To read the entire story see, “Plan to End Bankruptcy in Rhode Island City Gains Approval.”