Law and legal issues

The new regional authority taking over Detroit's Water and Sewerage Department should be a positive for holders of existing DWSD debt, Moody's Investors Service said Friday.

Jefferson County said Friday it will appeal an Alabama federal judge's ruling that threatens investors' security in $1.8 billion of sewer warrants sold last year.

The Chapter 11 bankruptcy of a public benefits corporation in Kentucky highlights the risks associated with such agencies, Moody's said.

A deal to create a new bond-issuing authority to take over the troubled Detroit Water and Sewerage Department advanced this week with the remaining counties approving the plan.

At The Bond Buyer's California Public Finance Conference, Schiff Hardin's Rick Frimmer discussed the implications of recent developments in municipal bankruptcy.

An Alabama federal judge set a July 2015 trial date for two ex-JPMorgan bankers facing pay-to-play charges in Jefferson County's sewer deals and swaps.

Moody's Investors Service warned Wednesday it may downgrade Detroit's Ca-rated certificates of participation, saying it expects to resolve the outlook when and if the bankrupt city settles with the bond insurer that wraps the bulk of the certificates.

The Civic Committee of the Commercial Club of Chicago said it plans an initiative to promote a dialogue on the consequences should the Illinois Supreme Court overturn pension reforms adopted last year.

The most-traded P3 bonds have rallied this year, and retained gains since the Sept. 22 bankruptcy filing by the manager of the Indiana Toll Road.

The city of Detroit rested its case in the trial to decide if its bankruptcy confirmation plan will be confirmed after Detroit Mayor Mike Duggan and City Council President Brenda Jones testified that they would work to support and implement its plan of confirmation.

An Alabama federal judge's refusal to dismiss an appeal of Jefferson County's bankruptcy plan is credit negative for sewer warrant holders, Moody's said Oct. 6.

Bond insurer Syncora Guarantee Inc.'s settlement with Detroit was the focus of much of the testimony Friday during the federal trial on the city's bankruptcy exit plan.

Texas Attorney General Greg Abbott announced settlement of an investigation of anticompetitive activities involving underwriting fees paid by municipal utility districts in the Houston area.

Fitch plans to investigate how the comptroller for Florida State University's Boosters allegedly stole as much as $700,000.

The bankruptcy of the private operator who runs the Indiana Toll Road is not expected to affect the triple-A rated state’s credit, Moody's Investors Service said Friday.

San Bernardino experienced another setback in its bankruptcy when the police union's president announced that a breakdown has occurred in a tentative agreement with the city.

Fitch Ratings and Standard & Poor's say the recent ruling in Stockton, Calif.'s bankruptcy case does not have significant credit implications for Stockton and other distressed municipalities.

A judge's decision that bankrupt California local governments can impair pension obligations could open the door for pension negotiations but won't cause a rush to file for Chapter 9 bankruptcy protection, municipal bankruptcy attorneys say.

South Florida environmentalists filed suit Thursday to stop dredging of the channel to ready the PortMiami for opening of the expanded Panama Canal.

Fluvanna County, Va.'s three-year legal tussle with Davenport & Co., has come to a close after the county's Board of Supervisors accepted an offer from the firm to drop its pursuit of $1.6 million in legal fees in exchange for an end to the suit and a public statement by the board retracting the claims it made against Davenport.