The Public Purse offers you serious thinking about economic, financial and political trends at the U.S. state and local level with a focus on municipal credit risk
TAG | Prichard Alabama
This is a follow-up to the earlier post on October 14 about Prichard, Alabama when the city failed to make the October payment to their retirees. According to the Press-Register city leaders do not expect to pay November either. To protect themselves from the lawsuit that ensued they filed Chapter 9 (municipal) bankruptcy yesterday. (Note to the municipal bond [...]
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Prichard, Alabama fails to pay retirees
2 Comments | Posted by Natalie Cohen in bankruptcy and default, bond insurance
The check is not in the mail. Prichard, Alabama, came out of Chapter 9 bankruptcy in 2002 and promised to make deposits into its public pension fund. They didn’t and now they are simply out of money. Retirees did not get their October 1 payment. What’s next? The retirees are suing. The city is looking [...]
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The Next Municipal Bankruptcy?
0 Comments | Posted by thepublicpurse in bankruptcy and default
Prichard, Alabama, town of about 25,000, outside of Mobile, filed Chapter 9 bankruptcy in 1999 and finally exited in 2002. They look poised for a second round. Their issues seem similar to Vallejo, California – they cannot afford to continue paying their retiree pensions and could run out of money in the next month. We [...]