Thursday, May 20, 2010

Central Falls Rhode Island - Bankrupt - Goes Into Receivership

It's the end of the line for Central Falls, Rhode Island. Central Falls had been perpetually spending more than they take in. That's about to change.

Please consider $3 million in debt, Central Falls in receivership. http://www.projo.com/news/content/CENTR ... 3a73f.html

Declaring fiscal insolvency, city officials Wednesday persuaded a Superior Court judge to appoint a receiver to take over municipal finances, a process that could end up with new contracts imposed on the city’s unions and vendors.

Receivership is the state-law version of federal bankruptcy. The court-appointed receiver has the power to approve or reject purchases and payments and, if the court approves, change contracts with unions and vendors and hire and fire municipal employees.

City Solicitor John T. Gannon said the city is in the middle of all its municipal employee union contracts. Mayor Charles D. Moreau has been trying to negotiate concessions, he said, but without success.

Central Falls’ slogan is “A City with a Bright Future,â€