Bankrupt Pennsylvania City Seeks Emergency $5 Million State Loan

The bankrupt city of Chester, Pennsylvania, told a court that it needs to borrow $5 million from the commonwealth to make payroll and avoid furloughing its employees early next year.

Without approval of the $5 million loan by the end of the year, Chester will also be unable to pay vendors and suppliers by the second week of January, it told the US Bankruptcy Court for the Eastern District of Pennsylvania in an emergency motion Thursday.

“If the City does not receive the 2023 Loan, its ability to make payroll on January 6, 2023 will be in severe jeopardy,” Chester ...