Chicago Public School System’s $228 million time bomb : The Near Bankruptcy of Public Education in The Blue City.

The Chicago Sun-Times reports:

Even as it confronts a federal investigation that’s embroiled its chief executive, Chicago’s public school system is facing the prospect of having to make payments to four financial institutions that would largely wipe out its cash reserves.

And they could demand those payments with just 48 hours’ notice, records examined by the Chicago Sun-Times show.

Investment bankers who entered into risky transactions with the Chicago Board of Education called debt swaps could demand payment of an estimated $228 million, documents the district filed with federal financial regulators show.

That possibility was triggered by the school system being hit with a dramatic downgrade in its credit rating last month.

Is public education viable?