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In a motion filed in U.S. bankruptcy court late last month, the district claimed that it could now deal with creditors on its own and did not need further protection under Chapter 9 of the federal bankruptcy code.

The district, which filed for bankruptcy protection five months ago, has since trimmed its staff and faculty. It also eliminated some of the elective classes established as part of its renowned, but costly, intradistrict choice program, state overseers said. ('See Education Week,...

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