Bankruptcy

The group of motorists who lost their challenge to the Elizabeth River Tunnels public-private partnership in the Virginia Supreme Court are asking the court to rehear the case, as the commonwealth's governor-elect suggests he is interested in working to lower the planned toll rates for the tunnels.

Fitch assigned preliminary non-investment grade ratings to bankrupt Jefferson County, Ala.'s upcoming $1.7 billion sewer warrant sale.

Fitch expects to assign a BBB-minus rating to bankrupt Jefferson County, Ala.'s upcoming sale of $105 million in GO warrants.

The California Public Employees' Retirement System wants to skip steps in its appeal of the order granting San Bernardino, Calif., the eligibility to be in Chapter 9 bankruptcy.

Scranton., Pa., risks default as it faces a $20 million budget gap and a further $28 million to settle a pension award with a Friday deadline to introduce its budget, according to Moody's.

The question of whether Detroit negotiated in good faith with its creditors, or even could, emerged as a central question in the nine-day trial over whether the city is eligible to enter Chapter 9 bankruptcy.

Stockton's vote to approve raising the sales tax is a credit positive for the city and for its bond insurers as it increases the likelihood that the bankruptcy exit plan will be approved, according to Moody's Investors Service.

Two bond insurers sued Detroit Friday for defaulting on its general obligation bonds, a challenge that goes to the heart of the city's unprecedented effort to treat its unlimited-tax GO debt as unsecured.

Attorneys will present closing arguments Friday in Detroit's court battle to enter Chapter 9 bankruptcy, capping an eight-day trial that centered on whether the city has negotiated in good faith with creditors.

The SEC's enforcement action against participants in the Regional Events Center Public Facilities District's arena deal shows that the commission will not shy from seeking financial penalties against municipal issuers and transaction participants, market participants said.

Jefferson County, Ala.'s bankruptcy plan will eliminate dozens of suits, restructure debt, and offer the sewer system "a fresh start," court documents said.

Bankrupt San Bernardino's city attorney, Jim Penman, was recalled by voters, and so was Councilwoman Wendy McCammack who still qualified for a runoff in the mayor's race.

The bankrupt city of Stockton, Calif., is planning to sell $55 million of water revenue bonds next week to convert its outstanding variable rate bonds to fixed-rate.

Bond insurer Syncora Guarantee Inc. filed an objection to Detroit's effort to repair its broken down streetlight system with the use of the city's utility tax to back bond payments.

Detroit late Tuesday asked the federal judge overseeing its bankruptcy case to approve a controversial $350 million debtor-in-possession financing.

Bankrupt Jefferson County, Ala., began marketing efforts in earnest in advance of selling $1.74 billion of sewer system refunding warrants to finance its exit from Chapter 9.

Stockton residents voted to approve a sales tax increase that will help the city fund its plan to exit Chapter 9 bankruptcy.

Former Michigan Treasurer Andy Dillon said Tuesday that he became convinced bankruptcy was inevitable for Detroit when he saw the city’s proposal for unsecured creditors.

If approved, Stockton’s plan to exit bankruptcy identifies negotiation strategies, legal ambiguities, and potential consequences for future municipal bankruptcies, according to Fitch Ratings.

Former JPMorgan bankers argue that bankrupt Jefferson County, Ala.'s swap transactions are outside the Securities and Exchange Commission’s purview.