Bankruptcy

Subordinate bondholders will likely be wiped out.

The cash-strapped city of Chester had been hoping the water authority sale would be its route out of bankruptcy.

The bill was introduced by a state senator whose district includes a county that is struggling to roll over a privately placed tax anticipation note.

A lawyer for the bondholders said a majority support the proposed treatment of the $61 million of outstanding bonds.

The nonprofit Oroville Hospital filed for Chapter 11 bankruptcy after failing to sell itself or secure an affiliation with a larger hospital system

While the plan of reorganization says bondholders will get 100% of principal, it won't be for 12 years. And they will lose some interest.

This is the first upgrade of bonds supported by assets currently or formerly in the Puerto Rico government's hands since the passage of PROMESA in 2016.

The deal offers a better recovery than earlier deals but no principal payment for 12 years.

Attorneys for the Archdiocese said it is "inevitable" bondholders will be hit with a cramdown.

The bankruptcy judge suggested Jackson Hospital and Clinic may be closed if it doesn't propose a plan of adjustment before the end of the calendar year.

The utility responded that it is not eligible to declare bankruptcy.

The city council of Harvey voted to declare the city financially distressed in a bid for state oversight, as the mayor warned of a city government shutdown.

Bondholders are pitted against each other in the case, where it looks like the majority holders may become owners of the distressed companies.

A group of bondholders are floating fresh financing to a bankrupt metals recycler that elevates their bonds above other holders.

A judge sentenced Randy Miller to six years in prison and his son, Chad Miller, to five years. They had pleaded guilty to fraud stemming from a bond sale.

While victims' attorneys now signal support for the settlement, bond attorneys still oppose the plan.

The bankruptcy court told bondholders and other creditors they should vote on the proposed reorganization by Oct. 29.

The Westin Chicago Lombard's owner is returning to market with unrated bonds designed to cure payment defaults on debt issued to exit bankruptcy in 2018.

Aleon Metals, along with its subsidiaries, which sold more than $300 million of tax-exempt revenue bonds since 2019, filed Chapter 11 bankruptcies in August.

The federal government didn't have enough influence in the resulting haircuts to the COFINA bondholders for it to be liable for their losses, the court said.