Law and legal issues

BRADENTON, Fla. — Jefferson County, Ala., must restructure its troubled debt or take “other significant reorganization activities,” according to the county’s first audit in three years.

SAN FRANCISCO — In this city known for its eccentricities, why should retiree benefit reform be any different?

CHICAGO — The efforts of five Wisconsin school districts to recoup their ill-fated $200 million investment in collateralized debt obligations have received reinforcement in the form of possible Securities and Exchange Commission action against an investment bank for its role in the transaction.

Pennsylvania’s capital city of Harrisburg should pursue negotiations with stakeholders to work out repayment of its outstanding debt before resorting to filing for bankruptcy.

A petition has been filed with the Florida Supreme Court challenging Gov. Rick Scott’s right to freeze state rule-making procedures, which is an action he took shortly after taking office in January.

SAN FRANCISCO — Hercules, Calif., is dealing with a fiscal and political mess that will require an effort worthy of its name to right its finances and pay debt service on $162 million of bonds.

Municipal bond issuers and underwriters should review all documents related to their pension disclosures, even those that were not prepared with disclosure in mind, an attorney told muni market participants Friday.

Nassau County last week opted to drop its lawsuit against the Nassau County Interim Financing Authority to end a control period that NIFA implemented in late January.

WASHINGTON — Self-regulatory officials may assess fees on municipal advisers based on their advisory activity and are focused on disclosure to retail muni investors.

The dissenting bondholder in the proposed settlement for the Ambac bond insurance policy issued for the bankrupt Las Vegas Monorail wants its dispute with the bond trustee moved to Nevada.

WASHINGTON — A former municipal derivatives trading desk manager at Banc of America Securities LLC has pleaded guilty to one criminal count of engaging in a conspiracy to falsify bank records in connection with a scheme to rig bids and pay kickbacks for investment agreements and other financial contracts in the muni market.

WASHINGTON — The Securities and Exchange Commission voted unanimously Wednesday to approve a proposed rule that would exempt municipal securities from credit-risk retention requirements imposed in the wake of the financial crisis.

CHICAGO — The Detroit suburb of Hamtramck has pressed Michigan officials to allow it to become the state’s first city to file for bankruptcy. Now it has reached a financial agreement with Detroit that, together with a hoped-for $2.5 million state loan, could stabilize its finances for at least the next 10 months.

Cravath, Swaine and Moore LLP will file Thursday its analysis of a potential bankruptcy filing for Harrisburg, Pa., but the City Council may not release that report to the public until next week.

ALAMEDA, Calif. — Less than six years after Oregon Coast Aquarium bondholders agreed to a substantial haircut to keep the nonprofit out of bankruptcy court, the facility is again struggling with its debt service requirements.

WASHINGTON — A federal bankruptcy judge has approved the restructuring and reorganization of the debt of the Connector 2000 Association, a beleaguered toll road operator in Greenville, S.C.

VICTORVILLE, Calif. — Despite a tempest of bad news about its finances, Victorville city leaders say bondholders are safe.

BRADENTON, Fla. — Florida lawmakers are moving forward to consolidate three toll-road authorities in a revised plan that now excludes the financially ailing Santa Rosa Bay Bridge Authority, which appears headed for a bond payment default this year.

WASHINGTON — A South Carolina bankruptcy judge held a hearing Friday to consider the restructuring plan for the Connector 2000 Association Inc., the bankrupt South Carolina toll road operator, setting up the issuer’s exit from bankruptcy after years of uncertainty for bondholders.

CHICAGO — An appeal challenging Wisconsin’s controversial legislation that strips most public unions of much of their collective bargaining powers and raises employee pension contributions and health care premiums should go directly to the state Supreme Court, an appellate panel said Thursday.