Central Falls could exit bankruptcy by early September under a schedule to which unions, retirees and a bankruptcy judge agreed, the Providence Journal reported.

Judge Frank Bailey of the U.S. Bankruptcy Court for the District of Rhode Island in Providence scheduled Sept. 5 and 6 for hearings on the five-year balanced budget plan proposed by receiver John McJennett, who succeeded Robert Flanders in late May.

Bailey retains jurisdiction throughout the plan, which would allow unions, retirees or the state to go to court if city officials stray from it.

City employees and retirees had to pay more for health care and retirees took pension cuts of up to 55%, but according to a state law enacted last year, investors holding city bonds are untouched.

Central Falls, with an 18,000 population, filed for Chapter 9 protection last Aug. 1, citing an $80 million pension benefit shortfall.

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