Bankruptcy

Dixon, Ill., has sued the city’s auditors for failing to uncover former Treasurer Rita Crundwell’s alleged embezzlement of more than $50 million.

WASHINGTON — The Virginia Resources Authority withdrew a $46 million chunk of its nearly $400 million pool bond issue last month and is reissuing it in a stand-alone deal scheduled to close next week, after a group of citizens questioned the legality of the transaction.

The analogy hit Anthony Figliola right away when 38 Studios, Curt Schilling's beleaguered video-game company in Providence, filed for bankruptcy.

A federal judge rejected a request by the U.S. Justice Department to use sections of certain audio files as evidence in the upcoming bid-rigging trial against former UBS Financial Services bankers Peter Ghavami, Gary Heinz and Michael Welty.

A Dauphin County judge sided with the Harrisburg, Pa., controller and treasurer in a dispute with Mayor Linda Thompson over the right to authorize electronic payroll.

The Scranton, Pa., City Council agreed to reconsider covering a $1 million debt payment to the Scranton Parking Authority, which is now in default.

Moody's Investors Service downgraded $1.75 billion of San Jose Redevelopment Agency bonds to junk after the city of San Jose said a default was possible because of a conflict over tax revenue with Santa Clara County.

Michigan officials said that an upcoming bond deal that is critical to keep Detroit's finances stable will be derailed if city officials proceed with a lawsuit challenging the city's recent consent decree with the state.

BRADENTON, Fla. — After the sale of $673 million of bonds to finance most of North Carolina's second toll road — the 19.7-mile Monroe Connector — the project has stalled.

Fitch Ratings downgraded $93 million of bonds issued on behalf of Aspire Public Schools to junk because of a lawsuit that could end the charters for half of its schools.

Shortly after embattled video game company 38 Studios LLC, filed for Chapter 7 bankruptcy protection on Thursday afternoon, Rhode Island officials were studying the effect on their financial picture and bond rating.

The Jefferson County, Ala., Commission has scheduled the first of three public hearings on sewer rates, which provide the revenue securing the county’s $3.14 billion of defaulted sewer warrants.

More than a dozen Birmingham residents, including two City Council members and two Alabama lawmakers, on Monday filed a $1.63 billion claim in Jefferson County's Chapter 9 bankruptcy case.

While bond insurer Ambac Assurance Corp. has been paying policyholders claims for the last several years, its related segregated account branch has not been doing so.

Detroit's corporation counsel has asked the Michigan Court of Claims to overturn the consent decree recently inked between the state and city that allowed Detroit to avoid an emergency takeover.

Central Falls, R.I., which is on the verge of exiting bankruptcy, would experience modest gains under its five-year budget plan.

JPMorgan Chase & Co. has agreed to pay $44.6 million to settle a 2008 class-action lawsuit in which municipal bond issuers accused the firm of bid-rigging of muni contracts.

Pennsylvania's Department of Community and Economic Development on Monday named law firm Stevens & Lee the recovery plan coordinator for Altoona.

WASHINGTON — A federal judge has delayed sentencing of CDR Financial Services and its founder David Rubin for several months, granting the Department of Justice additional time to complete complex calculations of restitution.

Deloitte LLP will work with Braver PC in a forensic audit of 38 Studios LLC, the struggling video-game company owned by former Boston Red Sox pitcher Curt Schilling, Rhode Island Gov. Lincoln Chafee announced.