Bankruptcy

An attorney seeking to overturn a state constitutional amendment that removed the interest rate cap on Arkansas state and municipal bonds said the measure should never have been put on the November 2010 ballot.

Warning about a "heightened potential" for a default this summer and greater risk that Central Falls, R.I., cannot stabilize a pension plan without filing for Chapter 9 bankruptcy, Moody’s Investors Service on Friday downgraded the city’s general obligation rating one level to Caa1 from B3, affecting about $20.8 million of outstanding debt.

CHICAGO — A Michigan city in receivership paid interest rates in the 6% range to sell a chunk of financial recovery bonds last week.

Northern Berkshire Healthcare Inc., unable to restructure $43 million in secured bond debt, has filed for Chapter 11 bankruptcy protection.

BRADENTON, Fla. - Alabama Attorney General Luther Strange Wednesday filed a motion to intervene on behalf of Jefferson County's sewer ratepayers in the receivership case involving the county's sewer system.

The Nassau County Interim Finance Authority Thursday hired accounting firm Grant Thornton LLP to review the Long Island, N.Y., county's troubled finances.

SAN FRANCISCO — Former Los Angeles Mayor Richard Riordan is still ringing the warning bell about municipal finances.

CHICAGO — A New York State court judge has ordered Assured Guaranty Corp. to honor coverage of $83.3 million of Iowa's Xenia Rural Water District bonds as part of its 2009 reinsurance agreement with CIFG Assurance North America Inc.

BRADENTON, Fla. — The receiver appointed to take charge of the debt-laden sewer system in Jefferson County is recommending that rates be increased to counter a decline in the number of customers, maintain the system and pay outstanding debt.

DALLAS — An audit of Harris County's finances has found questionable overpayments in transactions involving federal securities acquired or sold for the Texas county's investment portfolio.

CHICAGO - Debate was expected to began Wednesday in the Wisconsin Assembly on a new budget, one day after the state's high court reinstated Gov. Scott Walker's budget repair bill that raised employee pension payments and health care premiums and curbed most public unions' collective bargaining rights.

As the clock starts to tick for Harrisburg to act, local officials are parsing through a 418-page fiscal recovery plan that recommends the cash-strapped Pennsylvania city sell its incinerator and sell or lease other assets to pay down $220 million of outstanding debt tied to the facility.

CHICAGO - One of Michigan's top bond firms has launched a program to help fiscally stressed local governments navigate a slew of new laws crafted by Gov. Rick Snyder and passed by the Legislature this year.

The Houston Independent School District may join in a lawsuit against Texas over inequities in the state's school finance system, board president Paula Harris said last week at a news conference.

A long-awaited fiscal recovery plan issued Monday urges Harrisburg, Pennsylvania's capital city, to avoid a filing for bankruptcy and look toward asset sales and leases to get out from under its incinerator debt.

BRADENTON, Fla. - Jefferson County ordered that plans to place nearly 1,000 employees on administrative leave without pay be prepared this week as the government struggles to stay solvent through the fiscal year end.

DALLAS — The plan to balance Oklahoma's $6.5 billion budget with a diversion of highway tax revenues has been challenged as unconstitutional by an Oklahoma City attorney.

WALNUT CREEK, Calif. — California's largest conduit bond issuer and its private contractor are on the defensive after recent attacks on its roles both in and out of the state.

Sierra Kings Health Care District voters Tuesday overwhelmingly approved a proposed sale of the bankrupt hospital to Adventist Health.

California Controller John Chiang has said he will withhold lawmakers’ salaries if they fail to pass a balanced budget by June 15.