Law and legal issues

Gov. Tom Corbett's line-item veto of Pennsylvania's $29.1 billion budget jeopardizes the Harrisburg recovery plan, said state Sen. Rob Teplitz.

With its emergency manager warning of a possible bankruptcy, the city of Flint is hoping a temporary court ruling allowing it to cut retiree health care benefits will bring some relief to its 2015 budget.

As the legal fight over Puerto Rico's Recovery Act heats up, Argentina and Arkansas provide roadmaps to what may lie ahead.

The Illinois Supreme Court's decision that state constitutional protections of pension benefits apply to retiree healthcare premium subsidies "casts doubt" on recent local and state pension reform efforts, Moody's Investors Service said.

Florida has hired legal counsel to sue the bankrupt Digital Domain over $20 million in state incentive funding.

Syncora lost a key appeal in the Detroit bankruptcy case, giving the city continued access to crucial casino revenues.

Ceding to the city, the San Bernardino Police Officer's Association decided not to ask the bankruptcy judge to set a deadline for the city to file a plan of adjustment in a filing Monday.

Puerto Rico Resident Commissioner Pedro Pierluisi is exploring whether Congress might be willing to amend the federal bankruptcy code to allow government-owned corporations in Puerto Rico to file for bankruptcy.

Detroit's settlement with its limited-tax general obligation bondholders would repay them 34 cents on the dollar, the lowest recovery rate reached in a deal so far in the case.

A federal judge agreed to reopen a Department of Justice housing discrimination suit against the Louisiana State Bond Commission.

A new assessment of Detroit's art collection puts its price tag at up to $4.6 billion, significantly higher than the city's first valuation and more in line with bond insurers' estimates.

A Stockton bankruptcy court hearing provided clarity on collateral involved in the case, and hints about the judge's thoughts about the city's pension liabilities, but decisions on the city's exit plan will wait until October.

Opponents of the Atlanta Braves' $672 million stadium in Cobb County intervened in the proceeding to validate $397 million of bonds for the new Major League Baseball facility.

Lead Harrisburg plan attorney Mark Kaufman and his firm, McKenna Long & Aldridge, received an award for its financial restructuring of Pennsylvania's capital.

All creditors in the Detroit bankruptcy case must vote on the city's debt adjustment plan by Friday, a key vote that will set the stage for an August trial and the city's effort to exit Chapter 9 by early fall.

Continuing its quest for documents tied to the sale of $1.4 billion of certificates of participation, Detroit Friday said it would subpoena one of the banks as well as public finance attorneys involved with the 2005 transaction.

A federal appeals court judge advanced bond insurer Syncora Guarantee Inc.'s appeal of a key decision about casino tax revenue in the Detroit bankruptcy case, ordering a lower court to review the challenge by July 14.

Illinois retiree healthcare premium subsidies are protected by the state constitution, the Illinois Supreme Court concluded in a challenge that could foreshadow the fate of the state's more recent pension overhaul.

A Puerto Rico court has said the struggling bank Doral Financial will be able to have a court hearing for its claim against Puerto Rico's Treasury Department.

At least two bond insurers in the Detroit bankruptcy case will now enjoy the exclusive right to vote on the city's bankruptcy exit plan in place of individual bondholders.