Bankruptcy process starts for R.I. city in federal court
Central Falls, R.I., population 18,716, has declared Chapter 9 bankruptcy in federal court. As part of the process, collective bargaining agreements with city employees, including police officers and firefighters, could be overturned, changes have been made to employee health care plans, and pension payments to retired employees have been reduced.
Central Falls Receiver Robert Flanders announced Monday that Central Falls filed for Chapter 9 bankruptcy in federal court. Flanders said that he had filed a motion to immediately reject the collective bargaining agreements with the police and firefighters’ unions, as well as the municipal workers’ union.
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