Bankruptcy

Michigan advanced a plan to issue $450 million of private activity bonds for a hockey arena and entertainment district in downtown Detroit, not long after asking many Detroit bondholders to take stiff haircuts as the city seeks bankruptcy protection.

Bond insurers, banks and other stakeholders in Detroit are lawyering up in anticipation of court proceedings for the largest municipal bankruptcy case in U.S. history.

The bankruptcy judge overseeing Detroit Wednesday halted all lawsuits related to the city's historic bankruptcy filing, handing Detroit a key early victory and clearing the way for it to proceed with what would be the largest municipal bankruptcy filing in the U.S.

Many large managers of municipal bond funds with Detroit paper said they haven't heard any panic from their investing clients since the city filed for bankruptcy and many of their funds have lost value.

A California state judge denied the state's motion to dismiss a lawsuit over its cancelled deal to sell 11 state-owned buildings to private investors.

A deal to sell the Harrisburg incinerator, the focal point of the debt crisis in Pennsylvania's capital, is imminent, the city's state-appointed receiver said.

A federal judge sentencing three former UBS bankers convicted of muni bond bid-rigging said they might receive prison terms similar to three other defendants.

The Michigan Court of Appeals Tuesday granted state Attorney General Bill Schuette's request to halt an Ingham County circuit court judge's ruling that Detroit withdraw its bankruptcy petition.

A court fight is under way between the city of Charlotte and the North Carolina General Assembly over the ownership of Charlotte Douglas International Airport.

The first hearing in Detroit's historic Chapter 9 bankruptcy case is set for Wednesday.

The Securities Industry and Financial Markets Association warned Michigan Gov. Rick Snyder that the approach he is backing in Detroit's bankruptcy will cost cities across the state and urged him to uphold the city's unlimited-tax general obligation bond pledge.

Litigation is already stalling Detroit's effort to file for Chapter 9 bankruptcy protection.

As detroit enters into what would be the largest municipal bankruptcy in the u.s., ratings agencies said the outcome may have a negative impact on unlimited-tax general obligation bonds in future credit analysis.

Chicken Little is alive and well after Detroit's filing for Chapter 9 bankruptcy protection.

WASHINGTON — Rep. John Conyers, Jr. is urging the chairman of the House Judiciary Committee to hold hearings about the increasing number of municipality filings for bankruptcy under Chapter 9 and whether cities are misusing the process to “unilaterally abrogate obligations” otherwise protected by law such as those to retirees and bondholders.

Detroit's massive debt, its limited resources, the desire of state officials to put the city on a path of sustainability, and the huge costs of bankruptcy and other legal proceedings, in combination, virtually assures that holders of the city's debt will likely get cents on the dollar, even those who hold general obligation bonds, muni market participants said Friday.

An Ingham County Judge Friday afternoon said Detroit's bankruptcy filing is unconstitutional and ordered it withdrawn.

Officials overseeing Jefferson County, Ala.'s municipal bankruptcy say they understand the challenges and stigma that Detroit now faces.

As Detroit filed for bankruptcy, formerly bankrupt Central Falls, R.I. received an upgrade from Moody's Investors Service to B1 from B2.

Detroit emergency manager Kevyn Orr said Friday he expects an eligibility fight over the city's petition to file for Chapter 9 bankruptcy protection, but that his plan to pay creditors between 10 cents and 20 cents on the dollar should make for a speedy process.