Law and legal issues

The Pennsylvania agency overseeing Harrisburg's financial recovery has petitioned a court to extend the term of city receiver William Lynch for two more years.

Detroit has not reallocated payments for its unlimited-tax general obligation bonds because those bonds are tied up in federal mediation talks, the city said Monday.

During a hearing Monday, a U.S. bankruptcy judge set the trial date to hear Stockton, Calif.'s bankruptcy exit plan in March.

Detroit Monday disclosed the fees it must pay to Barclays Capital Inc. to secure a $350 million debtor-in-possession financing, after the bankruptcy judge overseeing the city's case ordered the disclosure.

There is no legal basis for the judge overseeing Jefferson County, Ala.'s bankruptcy case to reject the opinions of expert witness James White, argue opponents of the county's plan to exit Chapter 9.

Bankruptcy Judge Meredith Jury rejected another California Public Employees' Retirement System request for a direct appeal to the U.S. Ninth Circuit Court of Appeals on San Bernardino’s bankruptcy eligibility.

As Jefferson County, Ala., began to sell sewer warrants on Friday, analysts said they remained concerned about the rate increases needed to repay the debt.

The triple-B ratings assigned to Jefferson County, Ala.'s $1.7 billion sewer warrant deal should be considered "borderline non-investment grade," Standard & Poor's said.

The federal judge overseeing Detroit's bankruptcy case ruled Thursday that the city must reveal the fees it plans to pay to Barclays for a $350 million debtor-in-possession financing, one of the few DIP loans for a municipality in Chapter 9.

Bankrupt Jefferson County, Ala.'s former financial advisor James White revealed "privileged" information and violated his fiduciary duties, attorneys for the county claim.

Detroit emergency manager Kevyn Orr redirected $95 million meant for debt-service payments into a fund for restructuring costs, according to a budget memo obtained by the Detroit City Council.

Bankrupt Jefferson County, Ala.'s $1.7 billion of new sewer warrants should be rated in the speculative grade B category, Moody's Investors Service said in a special comment.

Desert Hot Springs, Calif. officials avoided steps that would lead to its second Chapter 9 bankruptcy during a special meeting, but the city hasn't resolved its fiscal crisis yet.

A lawsuit has halted delivery of $33 million of bonds for San Antonio's VIA Advanced Transportation District that priced Oct. 17.

The Harrisburg City Council OK'd a $270 million parking-asset lease that is one of two lynchpins to the financial recovery plan in Pennsylvania's capital city.

American Airlines and US Airways Group Inc. settled an antitrust lawsuit with the U.S. Department of Justice, clearing American's path to exit bankruptcy and repay its municipal bondholders.

The group of motorists who lost their challenge to the Elizabeth River Tunnels public-private partnership in the Virginia Supreme Court are asking the court to rehear the case, as the commonwealth's governor-elect suggests he is interested in working to lower the planned toll rates for the tunnels.

Fitch assigned preliminary non-investment grade ratings to bankrupt Jefferson County, Ala.'s upcoming $1.7 billion sewer warrant sale.

Fitch expects to assign a BBB-minus rating to bankrupt Jefferson County, Ala.'s upcoming sale of $105 million in GO warrants.

The California Public Employees' Retirement System wants to skip steps in its appeal of the order granting San Bernardino, Calif., the eligibility to be in Chapter 9 bankruptcy.