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Thursday, September 27, 2012
Postal Service To Default — Again
The Postal ServiceannouncedWednesday that it would not make a scheduled $5.6 billion payment to the Treasury Department by the end of the month, officially throwing in the towel on a second large payment in as many months.
The agency, which lost more than $5 billion in the most recently completed quarter, had been widely expected to default on the prepayment for future retiree benefits, and rushed on Wednesday to assure customers that business would continue as usual.
“Customers can be confident in the continued regular operations of the Postal Service,” USPS said in a statement. “We will continue to deliver the mail and pay our employees and suppliers. Postal Service retirees and employees will also continue to receive their health benefits.”