Law and legal issues

Fitch Ratings blasted Michigan Governor Rick Snyder's plan to pledge $350 million to Detroit pension debt, warning it could set a troubling precedent by elevating pension claims above bond debt.

The Michigan treasurer said that a state review team has found Royal Oak Township and Highland Park, both Detroit area cities, to be in a state of financial emergency.

Minnesota plans to sell $468 million of general fund appropriation-backed bonds for a new Minnesota Vikings stadium on Monday, two weeks after the state pulled the deal due to an 11th hour legal challenge.

A day after Michigan Gov. Rick Snyder unveiled a plan to pledge $350 million to Detroit's pensions, bondholders said it remains unclear how the influx of cash will play out legally.

Arizona public schools say the state owes them $330 million in state funding withheld during the economic downturn.

Michigan Gov. Rick Snyder said the state will commit up to $350 million to pay off Detroit's pension debt and protect its prized art collection, in what would be the state's first significant intervention in the historic bankruptcy.

Houston is seeking to overturn a Texas law that limits its right to negotiate limits on firefighter pension contributions.

An investigation of Florida's Orlando Orange County Expressway Authority prompted the board Wednesday to reduce the terms of a contract offer to the new executive director.

The judge overseeing Detroit's bankruptcy case turned down a request by bond insurers and other major creditors to weigh in on the fate of the city's art collection.

The Minnesota Supreme Court refused to block the state's sale of $468 million of general fund appropriation-backed bonds to help pay for the new $975 million Minnesota Vikings NFL football stadium.

State District Judge John Dietz reopened testimony on Texas school funding Tuesday, nearly a year after his ruling that the state's formula was unconstitutional.

Municipal bankruptcy expert James Spiotto is proposing the idea of public pension authorities to resolve pension issues.

The Detroit bankruptcy judge Wednesday will consider a motion by bond insurers and other major creditors asking for a formal role in the assessment of the city's art collection and ways to monetize it.

Lawyers for Minnesota Management and Budget and for citizens challenging the state's $468 million bond issue for a new Vikings football stadium laid out their cases with the Minnesota Supreme Court.

Jefferson County, Ala., Commission President David Carrington said he is working on a "tell all" book about the nation's second-largest municipal bankruptcy case.

Two lynchpin bond sales under the Harrisburg, Pa., recovery plan priced within the expected range when receivership officials filed the plan in August, according to a status report.

North Carolina State Treasurer Janet Cowell has appointed a commission to recommend reform measures for the state's $83 billion pension investment program.

Bond insurer Syncora Guarantee Inc. asked the bankruptcy court overseeing Detroit's Chapter 9 case to delay the city's effort to secure a $120 million debtor-in-possession financing, saying the loan may need to be restructured in light of the court's rejection of a related swaps settlement.

Lawyers for Minnesota and for citizens challenging the legality of the state's $468 million appropriation-backed bond sale for the Vikings football stadium faced a Thursday deadline to make their case for a Minnesota Supreme Court review.

Bankruptcy Judge Steven Rhodes rejected a $165 million settlement with Detroit's interest-rate swap counterparties, delivering a major blow to the swap counterparties and a victory for the city's bond insurers, retirees, and pension funds.