Pittsburgh, you're no Vallejo
The news is there is finally a proposed plan to have Vallejo emerge from bankruptcy. I am sure I will try to parse all this better in the future, but the short version I see (via first link above) has these key points: 1) unsecured creditors paid 10 cents on the dollar (ouch) 2) at least a 3 year moratorium on bond interest payments and possible other bond debt restructuring and 3) a big haircut on retiree health care benefits.
Probably not news in this, but I notice the confirmation that the bondholders of city debt are being paid by the bond insurers.
and as a former battleship sailor I am obliged to point out what may be bigger news out of Vallejo today. They are making efforts to bring the retired battleship the USS Iowa to Vallejo. If you thought the LST visit was cool... can you imagine? If only the rivers were deeper and the bridges higher. The lesson though is that life goes on in bankruptcy, for cities as well as people and more than a few firms.