- by James Spiotto With the end of the flurry of Congressional activity over impeachment, followed by a general yearning for the end to partisan conflicts, we now look to this year and what issues can be addressed before the national election. There remain lingering...
Municipal Bankruptcy and Default
What Illinois Can Learn From the Supreme Court of Rhode Island and Even Puerto Rico About Public Pension Reform
By James E. Spiotto The U.S. Supreme Court and virtually all state courts have recognized what the Rhode Island Supreme Court recently reaffirmed: insurmountable, unaffordable government contractual obligations for public pensions must be capable of reasonable and...
Chapter 9 Municipal Bankruptcy Statistics: Use by Number, Type and Year
Historically, the use of Chapter 9 bankruptcy by a municipality is still rare, and a last resort. MuniNet Guide's update on historical and current municipal bankruptcy statistics We are providing an update on our 2015 piece on municipal bankruptcy statistics. One of...
Written Statement of James E. Spiotto to the U.S. Senate Judiciary Committee
By James Spiotto United States Senate Committee on the Judiciary Hearing on Puerto Rico’s Fiscal Problems: Examining the Source and Exploring the Solution Is Chapter 9 Bankruptcy the Ultimate Remedy for Financially Distressed Territories and Sovereigns Such as Puerto...
Congress’s Role in Saving Puerto Rico from Financial Meltdown and Imminent Bankruptcy
by James Spiotto On December 1, 2015, the United States Senate Committee on the Judiciary held a hearing on whether and how best to assist Puerto Rico and its related municipalities and public corporations now facing severe financial challenges and economic distress....
Use of Chapter 9 Bankruptcy (by Number, Type and Year)
Historically the use of Chapter 9 bankruptcy by a municipality has been rare and a last resort: Since 1954, virtually all of those municipalities that filed Chapter 9 were small or not major issuers of Bond Debt except for Bridgeport, CT in 1991, Orange County in...
Chapter 9 and Alternatives – Part Three: Competing Interests in Chapter 9 and Bondholders’ Rights
by James Spiotto Chapter 9 is generally viewed as the remedy of last resort for troubled municipalities. If permitted by its state law, a municipality typically does not seek Chapter 9 relief unless it is in extreme financial distress with no obvious solution. Among...
Chapter 9 and Alternatives – Part One: Lessons Learned: An Update on the Municipal Bankruptcy Experience
by James Spiotto The state legislatures, in considering how best to assist local governments facing financial challenges or economic distress, may find instructive how other states have addressed these problems and the alternatives and opportunities available in the...
The Myth That States Required a Bankruptcy Option – Debt Resolution Mechanism’s for States
By James Spiotto Myth: States need the ability to go bankrupt and have no standing debt resolution mechanisms. Reality: Since the late 1800’s, no state has defaulted on its general obligation bonds with the exception of Arkansas in 1933 which was refinanced. State...
What Are the Causes of Municipal Defaults and Bankruptcy?
by James Spiotto A. Traditionally causes of municipal bond defaults in the U.S.A. have been more linked to inability to pay rather than unwillingness to pay or political risks: Economic depression. Non-essential services. Feasibility of projects and municipal...