Thanks to a new [Rhode Island] state law that places bondholders ahead of other creditors, Central Falls plans to pay investors the entire $635,000 it owes them in October.Read the complete article here.
Retired city workers might not be so lucky. Instead of $296,000 in pension checks promised before Central Falls became the second U.S. municipality to seek Chapter 9 protection this year, the retirees could get only $196,000 in payments next month—a 34% cut.
Correcting misconceptions about markets, economics, asset prices, derivatives, equities, debt and finance
Thursday, August 4, 2011
Rhode Island Law Cuts Retirees' Pensions To Pay Bondholders
Posted By Milton Recht
From The Wall Street Journal, "Bondholders Win in Rhode Island" by Michael Corkery:
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