Bankruptcy

Florida Supreme Court justices heard oral arguments May 7 in two appeals challenging the Florida Development Finance Corp.’s validation of $2 billion in bonds for a PACE program; one appeal says Florida’s PACE law is unconstitutional.

The Illinois Supreme Court on Friday struck down legislation that had overhauled state employee pensions, leaving the state burdened with enormous pension liabilities.

Struggling cities like Chicago need to embark on serious restructuring efforts before it’s too late and mounting retirement debt pushes them toward the fate of Detroit, said some architects of that city’s bankruptcy.

Attorneys for All Aboard Florida told a federal judge that the private passenger train owners could close on $1.75 billion in tax exempt private activity bonds around June 8.

The New Jersey Supreme Court heard testimony in a case challenging Gov. Chris Christie's decision to reduce scheduled contributions toward state employees' pensions.

Madison County, Miss., disputes its obligation to backstop some public improvement district bonds in a lawsuit with Radian Asset Assurance Inc.

Oregon will be able to manage the immediate impact of the Oregon State Supreme Court’s restoration of the cost-of-living adjustment, Fitch Ratings said in a May 6 report.

An Oregon Supreme Court decision striking down cost-of-living reductions is credit negative for both the state and its municipalities, according to a Moody’s Investors Service report.

Ohio-based Promedica Health System Inc. must divest itself of another local hospital after the U.S. Supreme Court refused to hear the hospital’s appeal of a lower court ruling blocking the merger.

A sentencing recommendation of 15 years in prison for former Arkansas Treasurer Martha Shoffner prompts an objection from her lawyer.

A federal lawsuit seeks to stop Ohio from using toll revenue from the Ohio Turnpike to finance non-turnpike related highway projects.

Standard & Poor's kept Atlantic City on credit watch negative in a new report released April 30 as the struggling gambling hub seeks short-term options to avoid a long-term bankruptcy.

Michigan Gov. Rick Snyder says the Detroit schools can't move forward if burdened by their current "crushing" debt load. To that end, the governor wants to divide the Detroit school district into two entities.

A second federal lawsuit has been filed challenging the private activity bond financing for the All Aboard Florida train project; the latest suit comes from Martin County, Fla.

Chapter 9 guru James Spiotto says states are increasingly realizing the importance of early intervention in their distressed cities to avoid the crisis of a municipal bankruptcy where everyone loses.

With a lawsuit between its two ski resorts settled, Park City, Utah, has earned a Standard & Poor’s upgrade on its sales-tax revenue bonds to AA-minus from A-plus.

Two Houston attorneys were named special prosecutors to look into criminal charges against Texas Attorney General Ken Paxton, who has admitted to violating state securities law prior to his election last November.

Maverick County, Texas, faces an uncertain future after losing the operator of its $42 million private detention center that defaulted on its debt amid a federal corruption investigation and missing audits.

The head of Wayne County, Mich., home of Detroit, has unveiled a recovery plan with deep cuts – including wiping out retiree health care – in an effort to avoid bankruptcy.

Harrisburg, Pa., has settled with its former attorney, Mark Schwartz, agreeing to pay him $80,000.