Those involved with the municipal bond market can exhale, at least in this one case. The muni bondholders for Central Falls, Rhode Island, which filed for bankruptcy, will get all their money back, plus legal fees. That's what bankruptcy Judge Frank Bailey in Providence ruled today, reports Bloomberg.
Unsecured creditors didn't fare nearly as well. At most they will receive up to 45% of what they are owed for five years. The 133 retired city workers will have their pensions cut by up to 55% but the yearly compensation won't fall below $10,000. The state will supplement that for five years.