Law and legal issues

In response to Fitch Ratings’ revision of its outlook on O’Hare International Airport’s general airport revenue bonds to negative, Chicago aviation officials said they are confident the airport’s position as a key hub for bankrupt American Airlines will limit any service cuts as the carrier reorganizes.

LOS ANGELES — Downey Regional Medical Center, a non-profit hospital located in greater Los Angeles, is close to reaching an agreement with Avanti Health Systems LLC that would enable it to exit Chapter 11 bankruptcy and make its bondholders whole.

CHICAGO — A federal judge in Indiana last week gave final approval to Menasha, Wis.'s $17.5 million settlement with bondholders that resolves litigation over the city's default on $23 million of appropriation-backed notes for its failed steam plant.

The Commonwealth Court of Pennsylvania on Friday confirmed attorney David Unkovic as receiver for Harrisburg.

BRADENTON, Fla. — Fitch Ratings on Friday revised the outlook to negative on three major U.S. airports in the wake of the Chapter 11 filing by American Airlines and its affiliate, American Eagle.

A judge has granted another extension to the Nassau Off-Track Betting Corp. in its prolonged legal fight with New York harness tracks, OTB officials said.

David Unkovic, whose appointment by Pennsylvania Gov. Tom Corbett as the receiver for Harrisburg has come under fire because of his ties to major creditors in the city's financial crisis, appeared before a Commonwealth Court judge on Thursday as part of his confirmation process.

PHILADELPHIA — The Securities and Exchange Commission is preparing procedures that it will use to conduct examinations of independent, non-dealer municipal advisors to see if they are complying with federal laws and rules pertaining to municipal securities, , an SEC official said Thursday.

SAN FRANCISCO — A Washington judge has dismissed a lawsuit that tried to void the state's $519 million bond deal for a floating bridge project.

SAN FRANCISCO — An arena in eastern Washington is headed for a $42 million default Thursday after state lawmakers failed to pass a rescue bill in time during an emergency session.

BRADENTON, Fla. — The Santa Rosa Bay Bridge Authority's bond trustee, Bank of New York Mellon, has hired a financial advisor to assist with restructuring the Florida authority's defaulted bonds.

CHICAGO — Blaming a bad housing market and the failure to reach an agreement with bondholders, an Ohio senior-living facility that missed its most recent debt-service payments filed for Chapter 11 protection last week.

In a recent report affirming the Birmingham Airport Authority's A-minus rating, Fitch Ratings said that it would be evaluating the potential effects of surrounding Jefferson County's bankruptcy filing.

CHICAGO — As market participants digested the news of American Airlines' Chapter 11 federal bankruptcy filing Tuesday, airports stressed their ability to withstand any potential impact while tax-exempt investors reached out to bankruptcy attorneys to gauge the strength of their holdings.

Municipal bond insurer Assured Guaranty Ltd. has filed suit against JPMorgan Chase Bank NA with regards to the sale of mortgage-backed securities by Bear Stearns & Co. JPMorgan acquired Bear Stearns in 2008.

CHICAGO — Michigan Gov. Rick Snyder Tuesday announced the appointment of an emergency financial manager for Flint, finalizing the state's takeover of the struggling city.

BRADENTON, Fla. — The federal judge in Jefferson County's bankruptcy case on Monday struck down two arguments by the receiver in charge of the Alabama county's sewer system supporting the contention that the receiver should remain in place.

LOS ANGELES — Though the San Diego Association of Governments has encountered a few wrinkles during due diligence, the agency is on track in its proposed $345 million purchase of a bankrupt toll road from a private operator.

DALLAS — The Texas Supreme Court determined Monday that the state's main business tax does not violate the constitutional prohibition against enacting a personal income tax without voter consent.

HARRISBURG, Pa. - A federal judge on Wednesday dismissed the Harrisburg City Council's petition seeking protection from creditors under Chapter 9 of the federal bankruptcy code.