Law and legal issues

The Harrisburg receivership team and many related parties anticipate closing a recovery plan aimed at keeping Pennsylvania's capital city out of bankruptcy.

Detroit's mayor-elect, Mike Duggan, will manage the bankrupt city's day-to-day operations under an agreement with the city's emergency manager, Kevyn Orr, that was announced Thursday.

Auction house Christie's valued bankrupt Detroit's art collection at between $454 million and $867 million in a final assessment turned over to city emergency manager Kevyn Orr this week.

The Irwindale, Calif. Sriracha chili sauce manufacturing facility now being threatened by a lawsuit from Irwindale, Calif. had been promoted as a successful use of California's now defunct redevelopment law.

CHICAGO – A federal bankruptcy court judge abruptly suspended hearings on Detroit's proposed $350 million debtor-in-possession financing and settlement with its interest-rate swap counterparties Wednesday and urged the city to use the time to renegotiate the swaps termination deal.

The federal bankruptcy court judge overseeing Detroit's historic Chapter 9 filing pressed the city Wednesday for more information on its strategy behind the decision to negotiate a settlement with interest-rate swap counterparties.

A five-day trial began Tuesday in one of two lawsuits filed by the San Diego County Water Authority two years ago challenging rates set by its wholesale water provider.

The Oklahoma Supreme Court overturned state legislation that cut the state's personal income tax and provided $120 million for repairs to the Capitol.

Detroit had to pursue a settlement with the interest-rate swap counterparties on its pension certificates or risk the "cataclysmic" loss of access to casino revenues, the city's investment banker told the bankruptcy court Tuesday.

CHICAGO - The judge overseeing Detroit's bankruptcy ruled creditors can appeal directly to the U.S. Court of Appeals for the Sixth Circuit rulings that the city is eligible for Chapter 9 and pensions are not protected in bankruptcy.

U.S. District Court Judge Dolly Gee granted the California Public Employees' Retirement System leave to appeal to the U.S. Ninth Circuit Court of Appeals San Bernardino's eligibility to be in bankruptcy.

The California Public Employees' Retirement System held a conference call with media to emphasized its belief that a Detroit bankruptcy ruling that pensions are not in a special class above other creditors does not apply to California.

It will be a busy week in Detroit, with the federal judge considering to key financings that have sparked major opposition from the muni market, as well as whether creditors can appeal the recent eligibility ruling.

Robert Rizzo, former city manager of Bell, Calif., agreed on Thursday to plead guilty to federal charges of tax evasion.

Jefferson County, Ala., must retain its bankruptcy attorneys because two groups have said they plan to pursue appeals of the county's confirmation order.

About to leave an office stripped of power, Detroit Mayor Dave Bing said he restored integrity to the tarnished post and helped establish a stronger foundation for the city.

New York-based attorney Kent Rowey, who advises on public-private partnerships said bond deals in Allentown and Harrisburg, Pa., "disappointed" him as P3 projects.

Bond insurer Syncora has asked to delay a key hearing on Detroit's proposed interest-rate swap settlement and debtor-in-possession financing.

Uncertainty related to Detroit's bankruptcy filing resonates among P3 players, according to Allen & Overy's Kent Rowey, who advises on many such deals.

Angela Spaccia, former Bell, Calif. deputy city manager, was found guilty on 11 felony counts of defrauding the city of millions of dollars.