Bankruptcy

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.

The National Museum of American Jewish History in Philadelphia filed for Chapter 11 this week, burdened by debt sold to construct its building.

Spiotto, considered the "dean of municipal restructuring," died suddenly on Thursday.

The Illinois attorney general's office is also believed to be looking into the foundation, which issued $170 million of tax-exempt bonds that have defaulted.

Bankruptcy hearings are underway for Lindan Properties, one of five troubled bond-financed Better Housing Foundation affordable housing portfolios in the area.

The state conduit that issued $170 million of defaulted Better Housing Foundation bonds is weighing in as S&P prepares housing bond criteria changes.

Recoveries would be from 65% to 77% for general obligation and Public Building Authority bondholders.

A proposed asset sale would resolve — with a loss for bond investors — one of five Better Housing Foundation-owned portfolios in default in the Chicago area.

Scott Wiener plans to introduce a bill later this week outlining a plan to take over the bankrupt investor-owned utility.

An Oversight Board lawyer said that an announcement might be made in the next 30 days.

Gavin Newsom's filing urges the judge overseeing the utility's Chapter 11 not to approve bankruptcy exit financing commitments.

The Clearwater Cay Community Development District dismissed its Chapter 9 case and will pursue a dispute about property assessments in state court.

The agreement with wildfire victims will enable the bankrupt investor-owned utility to hit a deadline to participate in wildfire claim fund, its says.

The risk of a state takeover of the bankrupt utility, which Gov. Gavin Newsom has suggested, is not incorporated into California's rating, S&P said.

One plan would convert the investor-owned utility into a customer-owned cooperative, while local governments and agencies look at municipalizing PG&E assets.