HUFFINGTON POST: …Officials said the city of nearly 300,000 could file for Chapter 9 bankruptcy by Friday afternoon, after the city council approved on Tuesday a budget that includes savings from the bankruptcy.
The $26 million budget gap that was expected for fiscal 2013 is filled half by savings from missed payments on the debt service and half by lower payments to employees, Standard & Poor’s analyst Chris Morgan told Reuters.
The decision to file for bankruptcy triggered ratings cuts into default by Moody’s Investors Service and Standard & Poor’s Ratings Services Wednesday… (more)
