Bankruptcy

Chicago will return to the bargaining table with its unions to take a second stab at reforms aimed at passing state constitutional muster, said Mayor Rahm Emanuel.

With Atlantic City inching closer to a government shutdown, multiple New Jersey Assembly members are calling for Gov. Chris Christie to compromise on a state takeover bill and use tools at his disposal to help the gambling hub avoid default.

Hillview, Ky. and creditor Truck America say they have reached a settlement over a $15 million judgment that will enable the city to dismiss its Chapter 9 bankruptcy case.

San Bernardino, Calif., reached a settlement agreement that gives bondholders a major haircut that is still substantially better for them than the city originally proposed in its Chapter 9 bankruptcy.

The official discussion draft bill released on Tuesday to help Puerto Rico is drawing criticism from nearly all sides.

The impact a Chapter 9 bankruptcy would have on Chicago Public Schools and its investors is cloudy, market participants say.

Puerto Rico plans to appeal a federal court decision that will cut government revenue by overturning a imported goods tax increase imposed on Wal-Mart and other retailers.

A federal court ruling Monday has at least temporarily eliminated 0.48% of Puerto Rico’s revenue stream.

Puerto Rico officials and observers of the commonwealth’s continued fiscal turmoil are saying a circulated congressional proposal to help the territory is concerning in its current form and are waiting for an updated draft that is expected from the lead committee on the issue in Congress on Tuesday.

Fitch Ratings slapped Chicago with a two-notch downgrade to BBB-minus, citing last week’s state Supreme Court ruling that tossed out city pension reforms.

Analysts who follow Greece see lessons for U.S. lawmakers on how to avoid a protracted debt crisis in Puerto Rico.

Fitch Ratings’ recent guidance on school bond ratings won’t bring across-the-board higher ratings to California school bonds; the agency will require a legal opinion to consider such GO bonds to be special revenues in a bankruptcy case.

Chicago must go back to the drawing board after the Illinois Supreme Court voided legislation that overhauled two city pension funds with the aim of keeping them solvent.

Michigan lawmakers gave final approval to nearly $50 million of emergency cash needed to keep Detroit Public Schools open through the end of the current school year.

New Jersey Gov. Chris Christie is pressing Assembly Speaker Vincent Prieto to support an Atlantic City intervention bill approved by the State Senate saying failure to do so could lead to a bankruptcy of the gambling hub.

House members are considering legislation for Puerto Rico that would mandate the creation of a federal oversight board and make it responsible for restructuring the territory’s debt and determining the priority of debt obligations and pension payments, several sources said on Wednesday.

The West Contra Costa Unified School District’s settlement of a lawsuit over parcel tax revenues is a potential credit hit for parcel tax levying school districts in California and a boost for charter school credits, Moody’s Investors Service said.

A massive restructuring of Detroit Public Schools to help the district avert bankruptcy cleared the Michigan Senate Tuesday.

With a potential default looming, Atlantic City is shutting down “non-essential” government services for at least a three-week period next month, its mayor said.

Several of the Supreme Court Justices seemed sympathetic with Puerto Rico’s complaints that a federal appeals court ruling striking down its debt recovery law for its utilities leaves it “in a no man’s land” where it “is not entitled to the benefits,” but “ is subject to the burdens” of Chapter 9.