Practice Areas & Industries: Pachulski Stang Ziehl & Jones LLP

 




Municipal Bankruptcies - Chapter 9 Return to Practice Areas & Industries

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Practice/Industry Group Overview

The purpose of chapter 9 of the Bankruptcy Code is to provide a financially distressed municipality with protection from its creditors while it develops and negotiates a plan for adjusting its debts. Reorganization of the debts of a municipality is typically accomplished by extending debt maturities, reducing the amount of principal or interest, refinancing the debt by obtaining a new loan or implementing an extended repayment plan. Chapter 9 is different from other types of bankruptcies because there is no ability to liquidate the assets of the municipality and distribute the proceeds to creditors (as in a corporate bankruptcy). The firm's substantial chapter 9 experience provides depth and resources in municipal bankruptcies that few firms can match.

Representative Cases

Adair County Hospital District

Mendocino Coast Health Care District

Valley Health System

Palm Drive Healthcare District

West Contra Costa Healthcare District

Corcoran Hospital District

Heffernan Memorial Hospital District

Orange County


 
 
Articles Authored by Lawyers at this office:

Delaware Bankruptcy Court Indicates That Directors and Officers of an Insolvent Company May Be Liable for Breaches of Fiduciary Duty for Failing to Provide Timely WARN Act Notice
Kenneth H. Brown,Peter J. Keane,Bradford J. Sandler, January 29, 2016
Directors and officers of distressed businesses face a dizzying array of challenges, including personal liability for unpaid wages under federal and state laws. The federal Worker Adjustment Retraining and Notification Act [1] and similar state laws (the "WARN Act") require at least 60...