Bankruptcy

Former employees of financial firms who have already pleaded guilty to rigging muni bond contracts will be allowed to testify in the upcoming bid-rigging trial against former UBS Financial Services Inc. bankers Peter Ghavami, Gary Heinz and Michael Welty, a judge ruled Tuesday.

Michigan's top court Wednesday heard arguments over the font size on petitions for a ballot referendum to overturn the state's controversial emergency management law.

The Bank of New York Mellon says a suit seeking class-action status in Jefferson County's bankruptcy case is "a procedurally improper attempt to pursue frivolous claims."

Struggling to repay $113 million in debt that financed its privately-owned and operated airport in Missouri's Ozark Mountains, Branson Airport LLC has won a reprieve against enforcement actions from bondholders in the form of an extended forbearance agreement.

The federal judge assigned to the upcoming bid-rigging trial against three former UBS Financial Services Inc. bankers has struck down requests to drop all six criminal counts of conspiracy, wire fraud, and witness tampering.

A lawsuit filed by a group seeking an election to overturn Glendale, Ariz.'s recent sales tax increase will be heard Aug. 14 in Maricopa County Superior Court

A court hearing looms on a state receiver's lawsuit demanding that it triple the city's income tax.

Stockton, Calif. asked bondholders and bond insurers to take major hits during the mediation process that preceded the city's Chapter 9 bankruptcy filing.

Phillip D. Murphy, a former manager of municipal derivatives products at Banc of America Securities LLC, now Bank of America Merrill Lynch, was indicted by a federal grand jury on three counts of conspiracy and wire fraud in connection with a fraudulent scheme to rig bids for municipal-bond related investment agreements.

Mark Schwartz, who has represented the Harrisburg City Council since October and filed a Chapter 9 petition on its behalf, withdrew from its most recent filing from the Commonwealth Court, saying he has not been paid.

The former - and first - head of the Illinois Finance Authority Ali Ata received probation from a federal judge this week for his role in a state public corruption scandal that eventually landed former Gov. Rod Blagojevich in prison.

Compton, Calif. is facing serious cash flow problems that could force the city to declare bankruptcy, the city's elected treasurer said Tuesday.

Bankrupt Jefferson County has formally set its next hearing on sewer system rates for July 24, though no rate proposal is currently being considered.

City officials say the $102 million of cuts - made without union or city council approval - are needed to avoid "chaos" as the city is on track to go broke by Oct. 15.

The powerful nine-member financial advisory board that oversees Detroit's consent decree with Michigan undertook its first major action last week, approving $102 million of cuts proposed by Mayor Dave Bing.

The Michigan Supreme Court agreed last week to hear a simmering dispute over a ballot referendum to overturn the state's emergency manager law. The court set a date of July 25 for the hearing.

An appellate court has denied a motion by environmental groups to stay the Nuclear Regulatory Commission's approval of the construction and operating licenses for two new nuclear units at Plant Vogtle in Georgia.

A regulator will allow bond insurer MBIA Inc. to make a payment on surplus notes issued in 2008, the company said.

Executives from video-game company 38 Studios LLC admitted in bankruptcy court that their breakthrough game fell short of expectations.

Central Falls could exit bankruptcy by early September under a schedule to which unions, retirees and a bankruptcy judge agreed.