Michigan

The federal bankruptcy judge overseeing Detroit filed Tuesday an eight-month schedule of key hearings ahead of a March deadline for the city to file its final plan of adjustment.

Michigan Attorney General Bill Schuette said he will join Detroit's bankruptcy in his role as "the people's attorney" to defend retirees' pensions.

Detroit's bankruptcy may be "profoundly meaningful" for distressed local governments, answering key questions about pension versus bond debt, and clarifying the strength of various bond securities, Moody's said.

Michigan advanced a plan to issue $450 million of private activity bonds for a hockey arena and entertainment district in downtown Detroit, not long after asking many Detroit bondholders to take stiff haircuts as the city seeks bankruptcy protection.

The bankruptcy judge overseeing Detroit Wednesday halted all lawsuits related to the city's historic bankruptcy filing, handing Detroit a key early victory and clearing the way for it to proceed with what would be the largest municipal bankruptcy filing in the U.S.

Many large managers of municipal bond funds with Detroit paper said they haven't heard any panic from their investing clients since the city filed for bankruptcy and many of their funds have lost value.

The Michigan Court of Appeals Tuesday granted state Attorney General Bill Schuette's request to halt an Ingham County circuit court judge's ruling that Detroit withdraw its bankruptcy petition.

Taking advantage of a new state law, Michigan said Monday it will dissolve a pair of cash-strapped school districts after the districts failed to secure adequate private financing to allow them to remain open for another year.

The first hearing in Detroit's historic Chapter 9 bankruptcy case is set for Wednesday.

The Securities Industry and Financial Markets Association warned Michigan Gov. Rick Snyder that the approach he is backing in Detroit's bankruptcy will cost cities across the state and urged him to uphold the city's unlimited-tax general obligation bond pledge.

Litigation is already stalling Detroit's effort to file for Chapter 9 bankruptcy protection.

As detroit enters into what would be the largest municipal bankruptcy in the u.s., ratings agencies said the outcome may have a negative impact on unlimited-tax general obligation bonds in future credit analysis.

WASHINGTON — Rep. John Conyers, Jr. is urging the chairman of the House Judiciary Committee to hold hearings about the increasing number of municipality filings for bankruptcy under Chapter 9 and whether cities are misusing the process to “unilaterally abrogate obligations” otherwise protected by law such as those to retirees and bondholders.

Detroit's massive debt, its limited resources, the desire of state officials to put the city on a path of sustainability, and the huge costs of bankruptcy and other legal proceedings, in combination, virtually assures that holders of the city's debt will likely get cents on the dollar, even those who hold general obligation bonds, muni market participants said Friday.

An Ingham County Judge Friday afternoon said Detroit's bankruptcy filing is unconstitutional and ordered it withdrawn.

Officials overseeing Jefferson County, Ala.'s municipal bankruptcy say they understand the challenges and stigma that Detroit now faces.

Detroit emergency manager Kevyn Orr said Friday he expects an eligibility fight over the city's petition to file for Chapter 9 bankruptcy protection, but that his plan to pay creditors between 10 cents and 20 cents on the dollar should make for a speedy process.

Detroit filed a flurry of court papers late Thursday in support of its historic Chapter 9 request, including an outline of creditor negotiations that says the lack of representation and organization among creditors, including bondholders, made it impossible to reach settlements.

Detroit's bankruptcy filing on Thursday was not unexpected, but market participants say its impact is hard to gauge and that it has negative implications for the market.