Bankruptcy

The Westin Lombard hotel and conference center in Chicago's suburbs dipped into debt reserves to cover operations after closing in response to the pandemic.

The court filings could directly impact about $6 billion of bonds and $15 billion more indirectly.

California's response to COVID-19 became a factor in Verity Health System's Chapter 11 proceedings.

The Center on Budget and Policy Priorities said bankruptcy "could significantly raise states' cost of issuing bonds to pay for major transportation projects and other investments that boost the economy."

Senate Majority Leader Mitch McConnell said Wednesday he favors allowing states struggling with high public employee pension costs amid the burdens of the pandemic response to declare bankruptcy rather than giving them a federal bailout.

The Puerto Rico Oversight Board had asked for the postponement, citing the impact of COVID-19 and its possible financial impact on PREPA.

Smith, who headed the restructuring practice at Chicago-based McDermott Will & Emery, worked on nearly every major muni bankruptcy of the past 20 years.

Judges said the district court judge was reasonable in her treatment of the case differently from that of a corporate bankruptcy.

Puerto Rico Gov. Wanda Vázquez Garced issued an order for all residents except a few classes of essential employees to remain at home.

Vallejo, California, benefited from last week's record-low municipal market rates when it finally sold its water revenue bond refunding.