Hartford Connecticut Struggles To Avoid Bankruptcy

Sep 8, 2017

Hartford, Connecticut will run out of money in the next sixty days. If the state does not bail out the city, Hartford will file for chapter 9 bankruptcy. The city has a deficit of $50 million and is quickly running out of ways to pay its bills. “We face the greatest fiscal crisis in our city’s history,” officials said in a letter. The cost for health care, pension obligations, and debt servicing has contributed to the city’s financial crisis. A law firm has been hired to negotiate with bondholders. Bondholders “will need to be part of the solution today, through a serious, sustainable, long-term debt restructuring.” The state government has been unable to pass a budget for the current fiscal year. Lawmakers are struggling to close a $3.5 billion deficit. Since July 1, state operations have been funded by an executive order” that was signed by the governor. But funding for towns and cities has been slashed.