Bankruptcy Judge Frank Bailey yesterday signed off on a state-appointed receiver's recovery plan for Central Falls, R.I., paving the way for its exit from municipal bankruptcy and, eventually, the return of the city's elected government, the Associated Press reported yesterday. Judge Bailey approved the plan, which includes deep cuts to pensions and several years of tax hikes. Attorney Theodore Orson, who represents receiver John F. McJennett III, described Central Falls' finances as disastrous in August 2011, when the bankruptcy proceedings began. He said that the receiver's office is "thrilled" to return the city to fiscal stability.
