Bankruptcy

A hearing on Detroit's interest-rate swaps and proposed borrowing was pushed back until Tuesday due to a massive winter storm in the Midwest.

Detroit emergency manager Kevyn Orr said he asked the Securities and Exchange Commission to investigate the city's interest-rate swaps amid "serious questions" about the legality of the financings.

A Florida judge says Jacksonville violated the state's open meeting law when collective bargaining over pensions was done in private.

Bond insurer Ambac Assurance Corp. urged the federal judge overseeing the Detroit bankruptcy to reject the city's latest swap-termination deal, saying the terms are too rich in light of legal questions tied to the original financings.

Incoming mayor Eric Papenfuse, the face of Harrisburg, Pa.'s economic recovery, says he will will forgo an inaugural ball and get to work right after his inauguration.

As Detroit gears up to file its plan of adjustment this month in its historic bankruptcy case, the chief mediator in the case ordered the city Tuesday to meet with bondholders in a series of mediation sessions next week.

Jefferson County, Ala., is out of municipal bankruptcy but appeals of the bankruptcy plan and criminal prosecutions will keep the county in the spotlight.

The mediators overseeing Detroit's bankruptcy case recommended that the bankruptcy judge approve a settlement between the city and its interest-rate swap counterparties, calling it a significant step.

A federal judge has ruled that the Securities and Exchange Commission's fraud case against Miami, Fla. and its former budget director can continue in civil court, denying both defendants' motions to dismiss.

Former Bear Stearns banker Chol-Su "Chris" Pak was sentenced to three years of probation and a $20,000 fine for his part in a massive El Paso County corruption scandal.

A group of retired teachers and school officials launched the first legal challenge to Illinois' controversial pension reform law, claiming it is unconstitutional.

Detroit emergency manager Kevyn Orr filed an order with the bankruptcy court outlining and defending the city's revised settlement with its interest-rate swap counterparties.

Detroit's pension funds Thursday asked a federal circuit court to allow an expedited appeal of the bankruptcy court's recent ruling that the city is eligible for Chapter 9 and that its pensions can be cut, saying the case has national implications that warrant a speedy review.

Mark Schwartz, who represented the Harrisburg City Council in its failed bankruptcy filing, is suing Pennsylvania's capital city for nonpayment.

Providence, R.I., fire and police unions have sued Rhode Island's capital city, saying the city didn't factor longevity payments in calculating overtime pay.

Attorneys for Detroit's pension funds said they will challenge a new settlement between the city and its interest-rate swap counterparties.

The closing of Harrisburg, Pa.'s financial recovery plan "is not the end of anything," according to state-appointed receiver William Lynch.

As Fresno, Calif. continues to struggle with a weak economy, rising labor costs, and falling bond ratings, market participants express concerns of bankruptcy risk.

Bankrupt Detroit will shave about $65 million off its costs to terminate interest-rate swaps under a new settlement agreement reached with its bank counterparties the day of Christmas Eve.

The five-day trial to settle a rate dispute between the San Diego County Water Authority and its wholesale water supplier ended without the judge making a ruling.