Bankruptcy

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.