Harrisburg left potholes unfilled and raised income taxes as it sank into debt from an incinerator that was supposed to reap millions. Now, residents of Pennsylvania’s capital are days away from shedding the facility that drove the city to insolvency.
Jefferson County, Alabama, raised yields on some junk-rated junior bonds to attract enough institutional investors to complete a sale of $1.8 billion of sewer debt as part of a plan to emerge from bankruptcy.
National Public Finance Guarantee Corp. and Assured Guaranty Municipal Corp. sued Detroit, claiming a proposal by the bankrupt city’s emergency manager to cut payments to general obligation bondholders is illegal.
Detroit’s bankruptcy trial ended yesterday without a ruling from the judge on whether the city can remain under court protection, where creditors are limited in what they can do to challenge the city’s restructuring process.
Alabama’s Jefferson County is set to sell about $1.74 billion of sewer-refinancing debt this month as part of a plan to exit court protection almost two years after what began as the largest U.S. municipal bankruptcy.
Commissioners in Alabama’s Jefferson County approved a deal with creditors, including $100 million in new concessions from JPMorgan Chase & Co., that may allow the county to end its two-year bankruptcy.