Three-Way Fight Stalls Chester Bankruptcy
The Delaware River flows next to train tracks near Chester, Pa.
Photographer: Andrew Harrer/Bloomberg
Chester, Pa., is emerging as a test case for how far state law can shape municipal bankruptcy outcomes after the Pennsylvania Supreme Court blocked the city from unilaterally seizing and selling its water authority, Angélica Serrano-Román reports.
The ruling left Chester without a clear path out of Chapter 9 after nearly four years. The city withdrew its turnaround plan in March and is now challenging the constitutionality of Act 73, a 2012 state law it argues was drafted to target Chester itself.
The case has splintered three ways: The city wants to monetize water ...