Law and legal issues

The board representing a major Detroit civilian retiree group board has voted in favor of supporting Detroit's proposed plan of adjustment.

S&P cut the ratings on the bonds of Tuomey Healthcare System in South Carolina two notches, to CC from CCC, citing the hospital's plan to file for bankruptcy if it fails to prevail in a federal lawsuit.

The California Public Employees' Retirement System has filed a friend of the court brief in support of appeals to Detroit's eligibility to be in bankruptcy.

A federal judge Wednesday heard arguments from Michigan attorneys defending the state's controversial emergency management law from a lawsuit that calls it unconstitutional and illegal.

Junk-rated Citrus Memorial Hospital in Florida continues to see financials decline and its ratings drop further into junk territory while its bonds continue to trade near par.

Huy Fong Foods, maker of the popular Sriracha sauce with the Rooster emblem, appears to be winning a battle in the court of public opinion with Irwindale, Calif. over odor complaints.

It is virtually impossible to predict what would happen if Puerto Rico's financial situation deteriorated to the point where it could no longer repay its debts, experts on distressed municipalities said Thursday.

An issuer's credit health may become more important to the evaluation of special revenue bonds if Detroit impairs its water and sewer debt, Fitch Ratings said in a detailed look at how it may revise criteria after the largest municipal bankruptcy in the U.S.

The record bankruptcy filing of Dallas-based Energy Future Holdings poses some risk to municipal bond issuers in parts of Texas where the company operates coal-fired power plants, according to Moody's Investors Service.

Florida lawmakers are in a last-minute push to replace the Orlando-Orange County Expressway Authority on the heels of a scandal that dogs the agency.

The banks that hold $1.4 billion of Detroit pension certificates have appealed the bankruptcy court's recent approval of a settlement with the counterparties that hold interest-rate swaps hedging the certificates.

South Carolina's Tuomey Healthcare System told bondholders Wednesday that it will file for bankruptcy if it cannot resolve a dispute with the federal government, which won a $237 million judgment against the hospital.

With two new settlements in hand, Detroit's attorneys at a hearing Monday touted the city's recent progress, with the judge calling the series of deals unprecedented in Chapter 9 history.

Settlements are coming quickly now in the Detroit bankruptcy case, as the city Monday announced a deal with a coalition of unions over collective bargaining agreements.

The federal judge overseeing Detroit's bankruptcy will consider final approval of a key bankruptcy document Monday that includes a fresh settlement reached with retirees late Friday.

Detroit emergency manager Kevyn Orr said a handful of major infrastructure projects and the city's thriving downtown will help drive a revival that mirrors places like Miami and Baltimore.

Oversight will be key to keeping the city out of another Chapter 9, Detroit CFO John Hill said at a Chicago forum on Wednesday.

Officials at Ohio-based Promedica Health System Inc. said they would go to the U.S. Supreme Court if necessary after a federal appeals court ruled a merger with another local provider would be anticompetitive.

Union-owned Amalgamated Bank has been carving a niche for itself with bond transactions in Harrisburg and Scranton, Pa., and Allen Park, Mich.

Faced with legal challenges to its plans for a publicly-backed hotel near the Oregon Convention Center, the Portland Metro Council has asked a judge to review its financing plan for the project.