Bankruptcy

A legal battle over the ability of a state-appointed receiver to force capital city Harrisburg to increase taxes played out in a Pennsylvania court.

GLC Advisors, representing investors owning $700 million of Jefferson County's defaulted sewer warrants, says low interest rates could make a refinancing possible.

Attorneys for Stockton, Calif., and its creditors hammered out a schedule and tipped their hats to the fight ahead during the first hearing on the city's bankruptcy case.

A federal bankruptcy court judge signed an order authorizing American Airline's assumption of its Tulsa maintenance base sublease, paving the way for the bond trustee on $237 million of debt to soon resume payments.

New York's Metropolitan Transportation Authority plans to appeal a court ruling that negated its payroll mobility tax and could cost it $1.2 billion.

The number of continuing disclosures muni bond issuers filed with the MSRB continues to increase, with issuers submitting 139,043 documents in the 12-months ending June 2012, according to a report released Wednesday.

Harrisburg, Pa., could miss another general obligation bond payment in mid-September in order to make payroll and could run out of cash altogether by the end of next month.

The Retired State Employees Association of Louisiana filed a suit in state court Aug. 16 to stop the implementation of a new state pension plan proposed by Gov. Bobby Jindal and passed by the 2012 Legislature.

American Airlines and the trustee on $237 million of revenue bonds issued for the airline's Tulsa maintenance base will ask the bankruptcy court to approve a settlement.

Bankrupt Jefferson County has rejected the lease securing $82.5 million of warrants. A payment default could occur on Oct. 1, though the debt is insured by Ambac.

Pennsylvania's Senate has delayed its hearings on Harrisburg incinerator bond financings, and seeks more detail from parties uncooperative toward a local audit.

The board of Detroit Public Schools last week approved several measures in a bid to regain control over the district last week after the suspension of Michigan’s emergency management law.

The state Supreme Court's invalidation of New York City's law expanding yellow cab service to all boroughs could create a $1.4 billion budget gap.

The Arizona Supreme Court said last week that a referendum on making permanent a temporary 1% state sales tax should go onto the November ballot.

A Florida law allowing local governments to declare a "financial urgency" can be an effective strategy for budget relief, says Fitch. Miami has used it several times.

Moody's Investors Service is considering across-the-board and targeted downgrades in California in the aftermath of the state's recent municipal bankruptcies.

Creditors of San Bernardino, California, have until Oct. 24 to decide whether they will try to have the city's bankruptcy petition thrown out, a judge said in the city's first day in court.

Defense lawyers for three ex-UBS AG municipal bond traders sought in cross-examination of a government witness to undermine prosecutors' claims that their clients broke the law.

Lloyds TSB sold its defaulted Jefferson County, Ala., sewer warrants, and is the second creditor to drop an appeal in the nation's largest municipal bankruptcy.

The Financial Industry Regulatory Authority has ordered four firms to pay more than $53,000 in fines and restitution to customers for violations of municipal securities fair-dealing, pricing and other rules.