Bankrupt Pennsylvania City to Fight for Taxes That Pay Bonds (1)

The bankrupt city of Chester, Pennsylvania, will try to divert future taxes away from bondholders to the municipality, lawyers told a federal judge at a court hearing Tuesday.

• The city will try to use cash that has been going to bondholders “to fund the plan of debt adjustment,” Matthew A. Hamermesh, an attorney for Chester said, referring to a future plan that would cut debt and let the city exit bankruptcy
• Chester filed a lawsuit as part of its bankruptcy asking US Bankruptcy Judge Ashely M. Chan to rule that all revenues related to the bonds that came in since ...