East Cleveland Considers Chapter 9 Bankruptcy

twl_2014_dec_blog7Distressed Illinois municipalities are not the only ones looking at Detroit and questioning whether bankruptcy is a viable option to help them turn things around financially. East Cleveland, Ohio has announced that bankruptcy may be its only option. According to Reuters, Ohio’s state auditor revealed this month that the city is insolvent and on the verge of collapse. Among a host of problems, cell phone service for the city’s workers was involuntarily disconnected recently because of the city’s failure to pay. In Illinois, municipalities suffering under similar financial woes have contemplated restructuring, but are technically prohibited from filing Chapter 9.

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