Nation IN BRIEF : CONNECTICUT : State Acts to Block City’s Bankruptcy
State officials in Connecticut went to federal court to block the city of Bridgeport from becoming the largest U.S. city ever to file for bankruptcy protection. State Atty. Gen. Richard Blumenthal said the city had no authority under state and federal bankruptcy laws to seek Chapter 9 protection. Blumenthal said that the suspension of the city’s bond rating by Moody’s Investor’s Service and Standard & Poor’s decision to drop its ratings to the lowest levels could compound both the city’s and the state’s financial problems. The Chapter 9 filing would allow Bridgeport to restructure its $220 million in debt while maintaining basic city services.
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