Bankruptcy

Federal Judge Thomas Bennett, who is overseeing Jefferson County’s bankruptcy case, said Monday that he may not make a decision about whether the receiver will remain in charge of the county’s sewer system until after Dec. 23.

Jefferson County will be without a finance director after Friday.

A federal judge late Tuesday afternoon denied an appeal by the Harrisburg, Pa., City Council of a ruling that invalidated its bankruptcy filing.

The Harrisburg City Council will appeal a federal judge's ruling that invalidated the bankruptcy filing of Pennsylvania's capital city, according to its attorney.

A federal court in New Jersey has approved a $46 million settlement between Wachovia Bank NA, now Wells Fargo Bank NA, and the Securities and Exchange Commission over bid-rigging of municipal-bond related contracts as well as the amounts of restitution that are to go to each of the almost 60 state and local issuers that were defrauded.

Jefferson County is not eligible to file for bankruptcy because it has no debt outstanding that qualifies under the Alabama law that authorizes municipalities to file for Chapter 9, creditors argued in court filings last week.

U.S. Bank is clawing back debt-service payments it erroneously paid investors after a public arena in eastern Washington defaulted.

With trading active on much of bankrupt American Airlines' $3.2 billion of special facilities revenue bonds, some market participants are sounding a cautionary tone in assessing their value, as bargain hunters eye the airline's discounted bonds secured by collateral.

The Securities and Exchange Commission said late Thursday that it is a "statutory party in interest" in Jefferson County, Ala.'s bankruptcy case and wants to receive all notices and documents filed with the court.

Wachovia Bank NA, now Wells Fargo Bank NA, has agreed to pay $148 million to settle securities, tax and other federal and state law violations stemming from fraudulently engaging in secret arrangements with bidding agents to win business from municipalities and profits for itself from the reinvestment of muni proceeds.

The potential ouster of the Jefferson County, Ala., sewer system's receiver in connection with the county's bankruptcy case could derail the long-held legal precedent that bonds secured by a specific pledge of revenues will continue to be paid during a Chapter 9 proceeding, according to creditors and industry participants.

A federal court judge in Chicago handed down a 14-year prison sentence to former Illinois Gov. Rod Blagojevich, who was convicted in June of corruption charges of using his office to enrich his campaign coffers and to try to profit from his pick to fill the Senate seat of President Obama.

Former JPMorgan banker Douglas MacFaddin and the Securities and Exchange Commission are seeking court sanctions against former Jefferson County commissioner Shelia Smoot for failing to appear for depositions and produce documents on several occasions.

The Inland Valley Development Agency in California disclosed that it and the San Bernardino International Airport Authority are being investigated by the Federal Bureau of Investigation.

The future of the Suffolk Regional Off-Track Betting Corp. in eastern Long Island is in question after a federal judge dismissed its Chapter 9 bankruptcy petition.

In response to Fitch Ratings’ revision of its outlook on O’Hare International Airport’s general airport revenue bonds to negative, Chicago aviation officials said they are confident the airport’s position as a key hub for bankrupt American Airlines will limit any service cuts as the carrier reorganizes.

LOS ANGELES — Downey Regional Medical Center, a non-profit hospital located in greater Los Angeles, is close to reaching an agreement with Avanti Health Systems LLC that would enable it to exit Chapter 11 bankruptcy and make its bondholders whole.

CHICAGO — A federal judge in Indiana last week gave final approval to Menasha, Wis.'s $17.5 million settlement with bondholders that resolves litigation over the city's default on $23 million of appropriation-backed notes for its failed steam plant.

The Commonwealth Court of Pennsylvania on Friday confirmed attorney David Unkovic as receiver for Harrisburg.

BRADENTON, Fla. — Fitch Ratings on Friday revised the outlook to negative on three major U.S. airports in the wake of the Chapter 11 filing by American Airlines and its affiliate, American Eagle.