A federal bankruptcy judge on Monday reaffirmed a recent ruling that the city of Prichard does not qualify under Alabama law to file for Chapter 9 municipal bankruptcy. The judge said state law requires a local government to have outstanding debt to file for bankruptcy.

Prichard filed for bankruptcy last year, claiming it was burdened with millions of dollars in unfunded pension obligations. At the time the bankruptcy petition was filed, the city said it had no outstanding long-term debt.

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