Does the Municipal Market Need to Forget Everything It Thought It Knew About Chapter 9 Bankruptcy?
Author: Ty Schoback.; Elizabeth L. Perris.; Bruce Bennett.; Jeffrey E. Bjork.
Source: Volume 36, Number 03, Fall 2015 , pp.1-24(24)
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Abstract:
Did the Detroit and Stockton confirmations lay bare the limits of indenture security provisions in the face of political pressures? What are the limitations of a federal judge imposing the court’s will on a municipality’s treatment of creditors? Pensioners vs. capital market creditors—how do other postemployment benefits fit into the equation? How is a restructuring attorney going to advise a distressed municipality? Will future municipal bankruptcies more closely resemble corporate bankruptcies, with settlements as the norm? If so, how should municipal analysts alter their thinking with respect to distressed governments?Keywords: Municipal bankruptcy, Chapter 9, statutory lien, corporate bankruptcy, pensioners vs. creditors
Affiliations:
1: Columbia Threadneedle Investments; 2: United States Bankruptcy Court; 3: Jones Day; 4: Sidley Austin.