Bankruptcy

Construction problems and cost overruns for a bond-backed project pushed the company into a pre-negotiated Chapter 11 bankruptcy. 

The bond parties argue that they are due the multi-billion-dollar fee from PREPA in addition to bond pricipal and interest.

Fallout from the Legacy Cares deal includes bondholder lawsuits against the underwriter and bond counsel, payment defaults, a Chapter 11 bankruptcy, and now fraud charges from the SEC and DOJ.

The SEC and DOJ announced charges in connection with municipal bonds issued for the Legacy Cares sports complex in Arizona, which defaulted and went bankrupt.

The Oversight Board's effort to confirm a "a legally infirm cramdown plan is patently flawed and will add years of litigation," the bondholders said.

Current and former residents of The Harborside, a 329-unit continuing-care retirement community in Port Washington on Long Island's North Shore, are anticipated to receive an initial $6 million distribution after a sale of the facility for $86 million to Chicago-based private equity firm Focus Healthcare Partners, according to a plan approved by a bankruptcy court.

A federal court has given an outside debtor-in-possession loan "superpriority" over the bondholders' lien.

San Francisco's commercial real estate struggles, Oakland's looming bankruptcy concerns, and the broader economic headwinds facing the Bay Area take center stage in this episode. Chris Thornberg of Beacon Economics and public policy analyst Marc Joffe join senior reporter Keeley Webster to discuss the impact of hybrid work trends, housing shortages, tax policies, and what it will take for these cities to stabilize their financial futures.

Plans to sell a bankrupt municipal bond-financed care facility to a private equity firm threaten to upend care for its frail senior residents.

It's the latest mark of distress for proton treatment centers financed with speculative-grade municipal bonds.