Municipal Insolvencies in the Wake of Detroit: Navigating Chapter 9 and Out-of-Court Restructuring

Best Practices for Municipalities, Bondholders, Pension Funds and Other Creditors

Recording of a 90-minute CLE webinar with Q&A


Conducted on Thursday, November 21, 2013

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will provide practitioners with an analysis of relevant and unique issues under Chapter 9 for municipalities, bondholders, pension funds and other creditors and options for consensual out-of-court restructuring.

Description

Pre-petition planning for Chapter 9 municipal bankruptcy is complicated by unique statutory preconditions for filing and #significant unsettled legal issues in the Chapter 9 context#. Bondholders, insurers of bonds, pension funds and other creditor groups must adjust to the unique aspects of the Chapter 9 process.

Where statutes prohibit or severely limit municipalities from filing Chapter 9, out-of-court workouts or restructuring alternatives may be the only viable option. Even states that allow Chapter 9 filings often impose #rigorous preconditions to a Chapter 9 filing# and stringent state oversight, both before and after such filing.

Counsel for various creditor constituencies, including unions, retirees, bondholders and insurers of bond debt, must understand the #complex and unique aspects# involved in municipal bankruptcies.

Listen as our authoritative panel of bankruptcy attorneys and professionals provides practitioners with the knowledge needed to analyze the possibilities for effecting a consensual restructuring without resorting to bankruptcy and the relevant issues and unique problems that arise under Chapter 9. The panel will explain the complexities in satisfying statutory preconditions for filing, pros and cons of filing, unsettled principles surrounding the criteria needed to "cram down" a plan, and how best to gain judicial support for such a plan. We will also provide valuable insight into key issues for the various creditor constituencies in the distressed municipality context, including, for example, unions, retirees, bondholders and insurers of bond debt.

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Outline

  1. Eligibility: Chapter 9, state law requirements and creditor challenges to the petition
  2. Pre-petition planning
  3. Plan confirmation strategies and role of creditors
  4. Out-of-court restructuring options

Benefits

The panel will review these and other key questions:

  • What eligibility hurdles does Chapter 9 present for insolvent municipalities and what steps are states taking to limit the ability of municipalities to file Chapter 9?
  • What restrictions does Chapter 9 place on creditor rights and remedies and what must municipal bondholders and creditors consider in the face of a municipal insolvency?
  • What must municipalities consider in pre-petition planning?
  • What are key factors and best practices for out-of-court restructuring?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.

Faculty

B. Summer Chandler
B. Summer Chandler

Partner
McKenna Long & Aldridge

Ms. Chandler's practice focuses on bankruptcy, workouts and debtor/creditor law and general commercial litigation....  |  Read More

Mark S. Kaufman
Mark S. Kaufman

Partner
McKenna Long & Aldridge

Mr. Kaufman represents secured creditors, lenders, investors and committees. He has also represented debtors in...  |  Read More

Luke A. Sizemore
Luke A. Sizemore

Reed Smith

Mr. Sizemore's practice focuses on commercial restructuring and bankruptcy. He represents financial institutions,...  |  Read More

Steven H. Felderstein
Steven H. Felderstein

Managing Partner
Felderstein Fitzgerald Willoughby & Pascuzzi

Mr. Felderstein has over 35 years of business bankruptcy experience, advising on all aspects of bankruptcy and...  |  Read More

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