City leaders in Hartford, Connecticut’s capital city and once the insurance capital of New England, have hired an international law firm that has expertise in bankruptcy, the Hartford Courant reported today.
The struggling city has hired Greenberg Taurig to advise the city on the legal machinations behind Chapter 9 –which can allow financially troubled cities and towns to restructure – to study alternatives to city financing.
The state’s fiscal year ended last week with now new state budget and no agreement on a short-term deal. That has left Hartford, which had requested tens of millions more in state aid to plug a $65 million deficit, teetering on bankruptcy, the Courant said.
“I understand the city, without a state budget has to explore all options,” said House Majority Leader Matthew Ritter, a Hartford Democrat and son of former House Speaker Tom Ritter. “I believe that bankruptcy would be swful for the city and my goal is to do everything I can to avoid that, but it is conditioned on us getting a state budget adopted. And as of July 6, we don’t have one.’’
Said Mayor Luke Bronin, “we think it is responsible to have the advice and counsel of a respected restructuring firm.’’
Former Providence Mayor Angel Taveras is a lawyer at Greenberg Taurig.