BRIDGEPORT, Conn. -- A U.S. judge held yesterday that Bridgeport has the right under state law to use Chapter 9 of the federal Bankruptcy Code.

"Bridgeport was generally authorized by state law to be a debtor," with all the rights and privileges debtors enjoy, Bankruptcy Court Judge Alan H.W. Shiff said in a 29-page opinion. He also held that state laws providing for oversight of the city's finance did not keep the city from filing for bankruptcy.

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