Alabama High Court: Bonds Not Needed For Municipal Bankruptcy Under Chapter 9

MONTGOMERY, Ala. - The en banc Alabama Supreme Court ruled unanimously April 20 that municipalities are not required to have indebtedness in the form of refunding bonds or funding bonds as a condition to eligibility to file for Chapter 9 bankruptcy (City of Prichard v. Scott A. Balzer, No. 11-00950, Chapter 9, Ala. Sup.).  Subscribers may view the opinion available within the full update.

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