( ) Why the Municipal Bond Market Expects Pledged Special Revenues to be Timely Paid to Bondholders in a Chapter 9 Proceeding. And, Why the First Circuit's Assured Ruling in Puerto Rico’s PROMESA Title III Proceeding Should Be Reheard or Reconsidered on Appeal....
municipal bankruptcy
PUERTO RICO’S REPUDIATION OF GENERAL OBLIGATION BONDS
PUERTO RICO’S REPUDIATION OF GENERAL OBLIGATION BONDS: A REAL RISK OR JUST KABUKI THEATER By James E. Spiotto On January 14, 2019, the Financial Oversight and Management Board, acting through its Special Claims Committee and the Official Committee of Unsecured...
Risk Perception of State and Local Government Debt May Stress Taxes and Leverage Without a Certainty of Payment – Use of Statutory Liens, Special Revenues and Other Means of Assurance
By James E. Spiotto Fiscal distress of or perception of risk of nonpayment by government begets higher cost of borrowing and even loss of access to the market The perception of fiscal distress leads to higher interest rates (cost of borrowing) in the global markets:...
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 History of Payment of State and Local Government Debt in the United States
Why is it important to pay state and local government debt? by James Spiotto Past economic downturns have taught us the importance of state and local governments to timely pay their public debts: Panics, recessions and depressions: Since...