Bankruptcy

Recent Posts

Snyder Says Detroit Won't Sell Art Assets
Posted on 12 Aug 2013 by State Net

Michigan Gov. Rick Snyder (R) said the state has no plans to sell any artwork from the Detroit Institute of Art as part of the city's Chapter 9 bankruptcy filing. Speculation has been rampant for months that pieces from the museum collection would... Read More

Heard About Detroit? The First Word on Treatment of Public Employee Pension Benefits in Chapter 9 (And Absolutely Not the Last)
Posted on 19 Dec 2013 by Kelley Drye & Warren LLP

by Ben Feder The recent ruling by Judge Stephen Rhodes finding the City of Detroit eligible for protection under Chapter 9 of the U.S. Bankruptcy Code has rightly received considerable attention. The determination that Detroit has met the standards... Read More

Prepetition Planning for Municipalities Filing under Chapter 9 of the Bankruptcy Code
Posted on 26 Apr 2012 by LexisNexis Bankruptcy Law Community Staff

by Francis J. Lawall and J. Gregg Miller This Emerging Issues Analysis is adapted from the Collier Monograph "Debt Adjustments for Municipalities under Chapter 9 of the Bankruptcy Code," by Francis Lawall and J. Gregg Miller. The authors... Read More

State Bankruptcies Should Cause Concern for All Americans
Posted on 21 Jan 2011 by Ted Connolly

Aside from the issues of a potential violation of the Constitution, the costs, and the effect on the state's municipal bonds, and the question of who in a state could declare bankruptcy for the state, a state filing for bankruptcy should raise... Read More

Detroit Emergency Manager Posits Sale of Art Masterpieces as Bankruptcy Looms -Van Gogh(ing) Once, Twice, Sold?
Posted on 5 Jun 2013 by Kelley Drye & Warren LLP

Kevyn Orr , the emergency manager appointed by Michigan Governor Rick Snyder to try to resolve the Detroit financial crisis , has effectively replaced the Detroit mayor, former NBA legend Dave Bing . However, it is Orr who in the upcoming weeks will... Read More

Creditors Object to Detroit Bankruptcy
Posted on 3 Sep 2013 by State Net

Scores of retirees and creditors, including the American Federation of State, County and Municipal Employees, have challenged Detroit's historic Chapter 9 bankruptcy filing, arguing that it is unconstitutional because it could be used to slash retiree... Read More

Cadwalader Clients & Friends Memo: Court Holds that Stockton is Eligible to File for Chapter 9
Posted on 5 Apr 2013 by Cadwalader, Wickersham & Taft LLP

On April 1, 2013, the U.S. Bankruptcy Court for the Eastern District of California ruled that the City of Stockton qualified to file for protection under chapter 9 of the Bankruptcy Code. The court's decision on this issue serves as an important milestone... Read More

Stockton Judge: Pension Obligations Are Not Impervious to Impairment In Chapter 9 Bankruptcy. What Comes Next?
Posted on 17 Oct 2014 by Kelley Drye & Warren LLP

by Ben Feder The perception that public employee pension obligations cannot be impaired in bankruptcy suffered a damaging blow several months ago in the City of Detroit bankruptcy case , and has now been fatally wounded by the recent ruling of Judge... Read More

Michigan Governor Wants to Open Bankrupt Detroit to World
Posted on 3 Feb 2014 by State Net

Last month Michigan Gov. Rick Snyder (R) unveiled a plan to help revitalize bankrupt Detroit: issue special visas to lure highly skilled immigrants to the city, or as he put it, send the message that "Detroit is open to the world." The city's... Read More

Stockton, California Chapter 9 Filing - Another Outlier, Or Harbinger?
Posted on 2 Jul 2012 by Kelley Drye & Warren LLP

Meredith Whitney, one of the first financial analysts to foresee the collapse of the housing market, famously predicted in December 2010 that a wave of municipal bond defaults was on the way . The wave, however, has yet to materialize, and the bankruptcy... Read More

The Stockton Saga Continues: Untouchable Pensions on the Chopping Block?
Posted on 22 May 2013 by Sheppard Mullin

by Barbara Altimus Shreero Judge Christopher M. Klein's decision to accept the City of Stockton's petition for bankruptcy on April 1, 2013 set the stage for a battle over whether public workers' pensions can be reduced through municipal... Read More

Michigan Governor Rick Snyder Endorses Detroit Bankruptcy
Posted on 23 Jul 2013 by State Net

Michigan Gov. Rick Snyder (R) signed off on the city of Detroit's Chapter 9 bankruptcy filing on Thursday, instigating the largest municipal bankruptcy case in the nation's history. The filing was made in U.S. District Court for the Eastern District... Read More

Steel Cage Match Between CALPERS and Bond Investors Continues in San Bernardino Chapter 9 Case
Posted on 10 Jan 2013 by Kelley Drye & Warren LLP

by Ben Feder The battle in California municipal bankruptcies between bond investors and Calpers , the California public employee pension system, began in the Stockton Chapter 9 bankruptcy case and continues unabated in the bankruptcy case of San... Read More

Michigan Lawmakers Approve 'Grand Bargain'
Posted on 9 Jun 2014 by State Net

Michigan lawmakers have given their approval to the bankruptcy exit plan negotiated by federal mediators that has come to be known as the "grand bargain." The nine-bill package, passed with bipartisan support in both chambers and expected to... Read More

Panic in Detroit? Motor City Moves Closer to Possible Chapter 9 Filing
Posted on 2 Jan 2013 by Kelley Drye & Warren LLP

Detroit has seen signs of revival in its urban core following the near-death experiences of GM and Chrysler. Unfortunately, its municipal finances remain beaten down by the city's long and precipitous decline over the past several decades. Labor... Read More