From The Wall Street Journal:
Thanks to a new state law that places bondholders ahead of other creditors, Central Falls plans to pay investors the entire $635,000 it owes them in October.
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. Read more: