Law and legal issues

A central Florida grand jury is investigating potential hiring improprieties by the Orlando-Orange County Expressway Authority.

Fitch Ratings downgraded more than $4 billion of Detroit Water and Sewerage Department debt to junk bond status Friday afternoon.

Detroit said creditors should have until June 9 to review and vote on the controversial debt plan it filed last week in bankruptcy court.

All of Detroit's major creditors, including bond insurers, Friday asked the federal judge overseeing Detroit's bankruptcy case to delay the fast-track schedule by at least a month or more.

Creditors stand to recover 75% of Harrisburg, Pa., general obligation bonds, Moody's Investors Service reported after Pennsylvania's capital announced its pending exit from state receivership.

Detroit Mayor Mike Duggan, in his first state of the city address, said the foundation has been laid for Detroit's revitalization as it moves through its historic Chapter 9 bankruptcy.

Justice Department lawyers have filed new documents to support their argument that convicted bid-rigger David Rubin should face a stiff penalty for his crimes because the kickbacks he received as part of the scheme caused real loss to municipal issuers.

A second lawsuit seeks to block tax incentives for a controversial $824 million Gaylord Rockies resort hotel.

Standard & Poor's affirmed ratings and removed from CreditWatch Detroit's distributable state aid bonds issued in 2010 and 2012 through the Michigan Finance Authority.

Harrisburg, Pa., will officially exit state receivership on Saturday while remaining under less intensive oversight.

Rhode Island's Senate oversight committee chairman wants access to all depositions and exhibits related to the state's lawsuit against video-game company 38 Studios.

The federal judge overseeing Detroit's bankruptcy case denied a request from major creditors, led by bond insurers, to slow down the city's fast-track schedule for approval of key bankruptcy documents.

A proposed settlement between Monticello, Minn., and investors holding its defaulted $26.4 million of telecommunication revenue bonds is advancing with the filing of a new class action bondholder lawsuit that is considered part of the settlement process.

Holders of Detroit's general obligation bonds are among the biggest losers in the city's debt plan, and that's prompting some muni market participants to call for a fresh look at how GOs are viewed.

Rhode Island's proposed settlement to pension overhaul lawsuits is a credit positive because it “removes a lingering source of fiscal uncertainty,” said Moody's.

A Georgia judge delayed the validation of $278.3 million in revenue bonds supporting the Atlanta Falcons' new stadium to hear opposing arguments.

The judge overseeing Detroit's bankruptcy case released a schedule Monday that sets hearings through June to consider the city's effort to shed its debts and move out of Chapter 9.

Detroit is being cautious about its revenue projections — and its ability to enter the capital markets — over the next decade, according to documents filed in bankruptcy court.

The bond insurers that wrap a chunk of Detroit's unsecured debt blasted the city's debt adjustment plan filed in bankruptcy court Friday, joining a chorus of criticisms from the municipal bond market.

Detroit filed a proposed plan of adjustment that lays out how the city hopes the bankruptcy court will treat its $18 billion of debt, including major cuts to bondholders.