Law and legal issues

Detroit's historic bankruptcy filing may lead to precedent-setting decisions on the treatment of general obligation bonds and other debt, though it has not meant big changes in daily investment strategy so far, according to a pair of market participants at the Bond Dealers of America conference.

Syncora Guarantee, Inc., the bond insurer that wraps some of Detroit's pension certificates, Thursday filed an appeal to Bankruptcy Judge Steven Rhodes' ruling that blocks the insurer's ability to freeze the city's casino revenue.

Former Detroit Mayor Kwame Kilpatrick was sentenced Thursday to 28 years in federal prison for running a criminal enterprise to enrich himself and his friends during the six years he was mayor of the struggling city.

Honolulu officials notified a federal judge that they have met the additional environmental requirements for the city's $5.3 billion elevated rail project he outlined in a December 2012 order.

Lawsuits in Kentucky seeking a rollback in tax rates for most library districts could result in multi-notch rating downgrades, Moody's warned.

Distressed Harrisburg, Pa., is launching a planning initiative as part of its financial recovery plan, Mayor Linda Thompson announced.

San Bernardino, Calif.'s attempt to use bankruptcy to win a dispute with the state over dissolution of its redevelopment agency appear likely to fail.

A former financial advisor for bankrupt Jefferson County, Ala., claims Citi, the investment bank heading up JeffCo’s sewer warrant refunding, violated Rule G-23.

Michigan Gov. Rick Snyder, after giving a rare deposition related to Detroit's bankruptcy case, issued a statement saying the Chapter 9 filing was a difficult but necessary decision.

Curt Schilling, the former baseball pitcher whose failed 38 Studios video-game company triggered a Rhode Island debate over moral obligation debt, plans to sell off personal items from his home.

Michigan Gov. Rick Snyder will be questioned under oath Wednesday about the decisions leading up to Detroit's historic bankruptcy filing.

Central Falls, R.I., a former bankrupt city whose bond rating is still junk, is raising money online for a park project with help from a crowd-funding platform.

California Gov. Jerry Brown signed a bill exempting the state's transit workers from pension reform while suing the federal government for blocking pension reform for those workers.

A lot of work needs to be done in Detroit, but the city has a great deal of potential, Michigan State Treasurer Andy Dillon said.

Bondholders owed nearly $20 million will be paid $50,000 in a bankruptcy settlement plan for the Great Platte River Road museum archway in Nebraska, a colossal financial failure.

Stockton's proposed bankruptcy plan provides clarity on recoveries of certain of the city's obligations, but some questions remain, according to Moody's Investors Service.

Jefferson County, Ala., failed to properly inform residents about the plan that will allow the county to exit bankruptcy, according to a complaint filed Friday.

Robert Rizzo, Bell's former city manager, pleaded no contest Thursday to 69 counts that he defrauded Bell, Calif. of millions of dollars.

The resolution of Detroit's obligations in its Chapter 9 bankruptcy stands to shape the municipal bond market for years, the Federal Reserve Bank of Chicago concludes in a new report.

Stockton, Calif. received the green light from its city council on its bankruptcy exit plan after reaching a deal with bond insurer Assured Guaranty.