Law and legal issues

Detroit emergency manager Kevyn Orr defended the city's bankruptcy and talked about the deal with unlimited-tax general obligation bondholders and the importance of future capital markets access in a wide-ranging exclusive interview with The Bond Buyer.

With the help of mediators, Detroit reached a settlement with its police and fire retirees, one of the thorniest parts of the city's historic Chapter 9 bankruptcy.

An Austin grand jury will consider evidence that Texas Gov. Rick Perry violated the law by cutting off funding for the Travis County District Attorney's anti-corruption unit as it investigated his office.

One judge was used to the limelight, the other wasn't. But Thomas Bennett and Mary France found themselves in the glare as they oversaw high-profile Chapter 9 cases.

Detroit bankruptcy Judge Steven Rhodes' decision to hire a municipal finance expert to review the city's bankruptcy plan attracted responses from five professionals, including a few well-known public finance figures.

Detroit's proposed settlement with its unlimited-tax general obligation bondholders is a positive development for the bondholders and insurers that wrap the debt, Moody's Investors Service said in a comment released Monday.

The municipal bond system is "set up not to be fair to the issuers," former Harrisburg receiver David Unkovic said at a conference in Pennsylvania's capital.

Puerto Rico's Supreme Court has declared unconstitutional the teachers' pension reform passed by the Puerto Rico government in December.

Detroit's historic bankruptcy case gained momentum with court approval of a controversial interest-rate swaps settlement and a deal on its unlimited-tax general obligation bonds, but challenges still lay ahead, legal experts said.

Four retired Chattanooga, Tenn., police and firefighters attempting to block recent pension reform measures filed suit against the city and pension fund.

Market participants believe Detroit's settlement with three bond insurers Wednesday is a breakthrough in the city's bankruptcy proceedings, even though it is not final and leaves many questions unanswered.

A Denver District Court judge has dismissed a lawsuit seeking to block $300 million of tax incentives for a Gaylord resort hotel.

A bond insurer Wednesday asked the bankruptcy judge overseeing Detroit's case to force the city to consider four new bids for the city's art collection that could bring in as much as $2 billion.

Detroit announced its first significant bankruptcy settlement, agreeing to pay insurers of its unlimited-tax general obligation bonds 74 cents on the dollar and to treat the debt as secured in the future.

The financial plight of Harrisburg, Pa., goes far beyond incinerator debt financing, according to a Widener Law professor who is running a conference on distressed cities.

Desert Hot Springs, Calif., is embroiled in a lawsuit with its police union stemming from a decision to slash police salaries to avert a fiscal crisis and possible return to bankruptcy.

A Georgia judge continues hearing arguments Thursday in the validation of $278.3 million in bonds to support the Atlanta Falcons' new stadium

Detroit's creditors filed a flood of objections to the city's bankruptcy plan Monday, arguing it lacked critical information needed to answer even basic questions such as recovery rates.

The Texas Department of Transportation is facing a federal criminal investigation of its land deals for expansion of Interstate 35E, according to reports.

Alameda, Calif.'s victory in lawsuits brought by municipal bond investors over a cable TV and internet system it sold could set precedent in municipal bond cases.