Bankruptcy

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.

Fitch Ratings says that California school general obligation bonds meet its “high bar” to determine if the revenue backing bonds would be considered special revenues in a bankruptcy, and therefore more secure.

The risky underpinnings of Chicago’s efforts to solve its $20 billion pension mess are taking center stage this week.

Sierra Club and other environmental groups filed a federal lawsuit to stop Colorado’s $1.8 billon P3 rebuild of I-70.

The Supreme Court will hear oral arguments Tuesday on whether Chapter 9 of the federal bankruptcy code, which does not apply to Puerto Rico, nevertheless preempts or makes illegal a law adopted by the commonwealth that would allow its utilities to restructure their debts.

Scranton, Pa., may finance its $31.5 million back-pay settlement with police and fire unions with a refunding of some of its $50 million stranded parking authority debt, officials said.

A bill to provide nearly $50 million in state funding to keep Detroit Public Schools open until the end of the school year is headed to the state Senate after clearing the House Thursday.

Senate Finance Committee chair Orrin Hatch, R-Utah, on Thursday called for Democrats and the administration to be more transparent and realistic, after proposing “unworkable” solutions to Puerto Rico’s crisis as Congress continues to work toward bipartisan legislation for the commonwealth.

A Financial Industry Regulatory Authority arbitration panel this week approved the removal of a complaint about Puerto Rico bonds from a financial advisor’s record after concluding the advisor kept the investor adequately informed of the risks posed by the bonds throughout their seven-year relationship.

Republican lawmakers from both the Senate and House introduced legislation on Thursday that would make the courts, rather than federal agencies, responsible for interpreting and determining the reasonableness of federal rules.

Detroit Public Schools got some positive news on Wednesday by way of nearly $50 million of emergency funding that cleared a House committee Wednesday.

Ferguson and the U.S. Justice Department will soon seek court approval on a consent agreement that outlines municipal court and policing reforms.

In a financial mess that spans the Atlantic, Louisiana affiliates of a German wood pellet processing firm filed for Chapter 11 bankruptcy, potentially leaving bond investors on the hook for a project poised to receive millions in state incentives.