Bankruptcy

DALLAS — The largest business association in Texas on Wednesday intervened in one of a cluster of lawsuits seeking to overturn the state’s public school funding system.

Few days remain in the Alabama Legislature's annual session and lawmakers continue to argue over whether to provide bankrupt Jefferson County fiscal relief.

Bond insurer Ambac Assurance Corp. on Monday requested to withdraw from a legal case for an $8.5 billion settlement with Bank of America concerning mortgage-backed securities.

Bankrupt Jefferson County, Ala. last week dismissed counter charges against the Bank of New York Mellon for withdrawing $584,742 from a construction fund.

If a judge approves a fifth amended reorganization plan, the Las Vegas Monorail Co. could exit bankruptcy soon.

CHICAGO — As the nonprofit health care world keenly awaits the U.S. Supreme Court's ruling on the new federal health care law, credit analysts warn that a ruling striking down the individual mandate while maintaining the rest of the law would deliver a blow to the already-suffering sector.

A federal judge last week approved the Metropolitan St. Louis Sewer District’s $2.7 billion consent decree with federal authorities, bringing to a close a nearly five-year old lawsuit over clean-water violations.

A circuit court judge last week declared unconstitutional a 2011 Illinois law requiring out-of-state companies to collect online sales taxes.

California lawmakers are considering a new bill that would change the state's four-month old municipal bankruptcy law, reigniting a battle between public employee unions and local governments.

Defense attorneys for three former banking executives accused of rigging municipal bond bids sought a mistrial Monday on the grounds that one government witness did not return to continue cross-examination.

The attorney representing the Harrisburg, Pa., City Council in its bankruptcy appeal filed a counterclaim Monday against the state, mayor and Dauphin County, all which sought damages against him two weeks ago.

Witnesses representing public power providers who testified before the House Committee on Natural Resources Thursday expressed grave concerns that Department of Energy proposals would increase costs and fundamentally alter the public power market.

A Sacramento Superior Court judge ruled on Wednesday that California Controller John Chiang does not have the authority to dock lawmakers pay for late budgets.

A defense attorney in the municipal bond bid-rigging trial in New York on Thursday interrogated a government witness about his memory, and even his drinking.

A federal judge in Birmingham Monday said that a portion of Jefferson County’s sewer system could be removed from the county’s 1996 consent decree for violations of the Clean Water Act.

Mayor Angel Taveras' $638.4 million budget proposal for distressed Providence, R.I., hinges on two large variables: court or union approval of pension overhaul at the local level and greater contributions in lieu of taxes from nonprofit agencies.

Federal Bureau of Investigation agents last week arrested Dixon, Ill., Comptroller Rita Crundwell for allegedly defrauding the city of more than $3.2 million in public funds since last fall and misappropriating $30 million since 2006, federal prosecutors in Chicago announced.

A California state court judge on Thursday appointed a receiver to manage the transfer of three parking garages in Stockton from city control to Wells Fargo NA, the trustee on $30 million of defaulted bonds.

Over the last four years there has been an "embryonic trend" of municipal bankruptcies, in the words of Arent Fox partner David Dubrow. These include Vallejo, Calif., Central Falls, R.I., Harrisburg, Pa., and Jefferson County, Ala.

Municipal bond issuers now may be more open to declaring bankruptcy and defaulting on loan payments, panelists said at the National Federation of Municipal Analysts annual meeting here Thursday.