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

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


 
Group Presentations
  Municipal Financial Distress - Past, Present, and Future, May 23, 2013