Bankruptcy

JobsOhio sold $1.56 billion of liquor profit-backed bonds Monday and Tuesday despite unresolved litigation that scared some investors away, seeing spreads of up to 137.5 basis points above Treasury rates on the taxable series.

The new sewer rate structure recently approved by Jefferson County, Ala., commissioners is an interim plan that can be altered as creditors negotiate a settlement to restructure more than $3 billion of defaulted debt, the county said.

Amalgamated Bank is providing a second round of financing to Scranton, Pa., so that the city can pay its employees and other obligations. The bank won't say what it's charging the city.

Former Boston Red Sox pitcher Curt Schilling intends to sell the famous bloody sock he wore during a 2004 playoff game at New York's Yankee Stadium to appease creditors of his defunct video-game company.

JP Morgan and Citi were set to price $1.5 billion of liquor-backed bonds issued by JobsOhio Monday and Tuesday despite delaying the deal last week when the state Supreme Court announced it would hear a case challenging the state law authorizing the bond sale.

Rhode Island Rep. Michael Marcello said he doesn't want public hearings on the $75 million loan guarantee to 38 Studios to interfere with a State Police probe.

Officials in Atwater, a northern California city that narrowly avoided bankruptcy last year, have proposed a half cent sales tax specifically earmarked for public safety for the March 5 ballot.

Moody's Investors Service downgraded more than $300 million in Fresno, Calif., debt to speculative grade.

The $1.5 billion JobsOhio bond deal set to price Wednesday and Thursday is delayed, sources said, after the state Supreme Court announced it would hear a case that could challenge the constitutionality of use of the bond proceeds.

Two of Louisiana's Republican state representatives have filed suit in state district court contending that Gov. Bobby Jindal's operating budget for fiscal 2013 is unconstitutional.

Fitch Ratings and Moody's Investors Service said the decision by the Florida Supreme Court upholding legislation requiring that employees contribute to the Florida Retirement System is positive for state and local governments.

The United States 11th Circuit Court of Appeals on Tuesday tentatively scheduled oral arguments in the appeal involving Jefferson County, Ala.'s sewer system receiver for the week of June 3. Creditors have appealed a ruling that stripped the receiver of the right to run the county's sewer system.

Moody's Investors Service placed tobacco settlement revenue bonds of issuers in 17 states and two territories under review with direction uncertain because of legal settlement announced in December. The action affects $20.5 billion of debt.

The Arkansas Supreme Court turned down a request from the state to reconsider its November ruling that lets school districts keep excess property-tax revenue from a statewide tax.

SUNY Downstate Medical Center in Brooklyn faces insolvency as soon as May, said New York Comptroller Thomas DiNapoli.

As the JobsOhio Beverage System prepares to sell $1.5 billion of bonds this week to finance a long-term lease of Ohio's liquor system, investors say a chief concern is an unsettled lawsuit challenging the privatization and lack of a back-up pledge in case of an unfavorable court ruling.

A ruling by the Florida Supreme Court last week upholding the state's pension reform measures is a positive credit factor, according to Standard & Poor's.

Moody's says the West Penn Allegheny debt restructuring features "close parallels" to the bankruptcy of the teetering health system's predecessor 15 years ago.

The trials began on Tuesday for six former Bell officials charged in a corruption case that came to light in 2010 and nearly bankrupted the city

Rhode Island Gov. Lincoln Chafee's proposed $8.2 billion budget includes a corporate tax cut and a $20 million local package to help distressed communities.