Bankruptcy

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.

While still opposing any bankruptcy filing by her own city, Harrisburg Mayor Linda Thompson said she would object to any extension of the Pennsylvania law that limits cities of Harrisburg’s size from a Chapter 9 filing.

Municipal bond expert Robert Doty says the risk of default for municipal bonds is concentrated in those that are dependent on private profit or nonprofit institutions’ performance.

The Scranton, Pa., Parking Authority went officially into default on Friday after the City Council Thursday turned down a request to pay $940,000 from a contingency account for a loan payment.

As California lawmakers dither over legislation to clean up the messy and sudden dissolution of the state's redevelopment agencies, cities are turning to the courts for clarity.

The Stockton City Council will decide next week whether to give its city manager the power to declare bankruptcy if it is unable to get enough concessions from creditors before the end of June.

DALLAS — Testimony is expected to get under way Monday in a lawsuit by a consortium of 54 Kansas school districts seeking more state aid for education.

Scranton, Pa.'s City Council is willing to allocate $940,000 from a contingency fund to the Scranton Parking Authority to avoid the agency’s default, but wants its officials to answer questions at a public caucus Thursday night.

Providence, R.I., Mayor Angel Taveras late Wednesday afternoon announced an agreement with municipal workers and retirees that city officials say will enable Rhode Island's capital to avoid bankruptcy through cuts in pension and health care benefits.

Troubles at 38 Studios, the video-game company founded by former Boston Red Sox pitcher Curt Schilling, could leave Rhode Island taxpayers with a $75 million bill through a loan guarantee — and emphasizes the risk economic development deals pose for issuers.

BRADENTON, Fla. — Bond insurer Syncora Guarantee Inc. warned prospective buyers of some of Jefferson County, Ala.'s defaulted auction-rate sewer warrants that the insurer may seek to subordinate that debt to its own claims if the warrants are sold to investors by JPMorgan.