Law and legal issues

The Justice Department and attorneys general from six states and the District of Columbia moved to block bankrupt American Airlines' proposed merger with US Airways under federal antitrust laws.

A New York state appeals court in Manhattan Tuesday reversed an earlier ruling and dismissed Syncora Guarantee's lawsuit accusing JPMorgan Chase of defrauding the bond insurer by misrepresenting a structured finance transaction.

The Arizona attorney general's office is looking into fund transfers and open meetings issues regarding the recent sale of the Phoenix Coyotes National Hockey League team.

The Michigan Finance Authority will sell $92 million of state aid revenue notes for the Detroit Public School District next week in the first market offering to carry the Detroit name since the city's bankruptcy filing.

Over the years, Detroit's financial deterioration and the city's downturn have been well documented, so its bankruptcy filing came as little surprise to most market participants. This point can be reinforced by Interactive Data's analysis below of six different bonds issued by Detroit and related entities, which are representative of the types of debt and structures Detroit has issued.

The MBTA defused a legal battle over disclosure, but not the controversy, by releasing details of generous payout to retired workers of Boston's transit system.

Moody's said Monday that "novel" refinancing plans proposed by bankrupt Jefferson County, Ala., and Detroit are being threatened by rising interest rates and raise risks for investors.

New York City can learn valuable lessons from Detroit's bankruptcy, Mayor Michael Bloomberg said, despite the contrasts between the two cities.

Herbert J. Sims' Richard Larkin does not believe that Detroit had to file for Chapter 9 municipal bankruptcy.

The California Supreme Court ruled in the Expo Line's favor on environmental challenges that could have shut down the $1.5 billion second phase of the light rail project linking Los Angeles and Santa Monica.

The privately owned Branson Airport LLC in Missouri --which is in default on its $113 million of municipal debt -- has filed a lawsuit against a group of airport contractors accusing them of faulty work.

A lawsuit by a spurned developer of a proposed $165 million entertainment center adjoining Irving, Texas', new convention center has been settled, clearing the way for a plan to resurrect the project.

The former chief of the Detroit Medical Center and the Wayne County sheriff will face off in November to be Detroit's mayor, a post that will hold little power until late 2014 at the earliest.

Environmentalists urge Louisiana Gov. Bobby Jindal to back a lawsuit seeking damages from oil and gas operations.

Ambac Assurance Corp will make supplemental payments on some policies in a segregated account that the company established to hold troubled liabilities during its bout with bankruptcy.

Jefferson County, Ala.'s disclosure statement won approval in Birmingham federal court Tuesday, after Federal Judge Thomas Bennett struck down objections to the bankruptcy plan.

Cynthia Thomas is the executive director of the Retirement Systems of the City of Detroit. She is the latest participant in IMMP's "5 Questions."

A second Michigan government is delaying its bond sale amid concerns over fallout from Detroit's bankruptcy.

In a response to an audit from the state controller's office, Stockton, Calif. officials said it did not provide any new information and instead slows down the city's recovery.

Detroit emergency manager Kevyn Orr has hired Christie's Appraisals to appraise the collection of the Detroit Institute of Arts.