Bankruptcy

A new civil grand jury report provides a new view of Victorville, Calif.'s convoluted finances, raising questions about the way the high-desert city uses bond proceeds.

Michigan and city officials reached an agreement with Bank of America Merrill Lynch that pushes back by two weeks the payment date on $80 million of privately placed notes. The extension gives the city more time to resolve a dispute with its top attorney, who is challenging the city's consent decree with the state.

For states planning cash flows over the next two years, passage of the federal Highway Bill creates a positive scenario for grant anticipation revenue vehicles known as Garvees, according to ratings analysts.

President Obama will sign the compromise two-year, $105 billion highway bill at a White House ceremony on July 6.

Mammoth Lakes, Calif., is set to become the second California municipality in as many months to file for bankruptcy protection after negotiations with its largest creditor failed.

Michigan Treasurer Andy Dillon last week recommended that the state launch a formal investigation into the finances of Allen Park, which has struggled with growing deficits since issuing $31 million of bonds in 2009.

Municipal issuers back the Municipal Securities Rulemaking Board's proposal to require dealers to discontinue temporarily masking the exact par value of large muni bond trades on EMMA, while dealer and institutional investor groups oppose it.

Federal Bankruptcy Judge Thomas Bennett said Friday June 29 that Jefferson County cannot keep sewer revenues in excess of operating expenses that are specified in bond documents. The county wanted to withhold the funds to pay estimated legal estimates and establish a reserve fund. Jefferson County currently pays $5.5 million a month in debt service on the $3.2 billion of outstanding sewer bonds. The county filed for bankruptcy in November 2011.

Lawmakers push the moratorium to Nov. 30 over the objections of critics who say it robs the capital city's receiver of a bargaining chip with major creditors.

The bankrupt, 18,000-population Rhode Island city receives long-awaited positive news from Wall Street

Stockton's filing for bankruptcy protection Thursday has already sparked a war of words between the city and one of its largest creditors.

Michigan officials Friday were hoping to win an extension from Bank of America Merrill Lynch on the payment due date on $80 million of privately placed notes to win more time to settle a dispute with Detroit and move forward with a planned refinancing.

The Rhode Island Economic Development Corp. has hired outside counsel to explore a clawback of money the state stands to lose amid the demise of video game company 38 Studios.

Landmark at Doral CDD bondholders won title to the land with a stalking horse bid of $67.5 million when no bidders came forward at auction.

Stockton, Calif. formally filed for Chapter 9 municipal bankruptcy Thursday.

Thursday's historic Supreme Court ruling was the best of the likely rulings for the non profit health care sector. But the decision upholds a law that features a host of challenges for the already-challenged sector.

A feud between San Jose and Santa Clara County, Calif. over redevelopment tax money that may have led to defaults and has spread uncertainty across the sector appears to have ended.

Standard & Poor's lowered its rating on Stockton, Calif., to D from "selective default" after the city said it would file for Chapter 9 bankruptcy.

Moody's Investors Service downgraded various debt supported by Stockton, Calif.'s general fund to Caa3 after the city announced it would skip payments as it enters bankruptcy.

Edward Moran says such a move by investors could help keep the struggling company behind the Yankee Stadium garage project out of bankruptcy.