Worries of Municipal Bankruptcies Over the Top?

more+
less-

Of late there has been considerable concern over the fact that cities and local governments are facing severe financial stress until they cannot meet their financial obligations promptly. Filing for bankruptcy is seen as a way out. The section of the bankruptcy code that applies to municipal governments is Chapter 9. Hence some city officials are contemplating filing for Chapter 9 bankruptcy protection.

But cities that file for bankruptcy might be protected financially from creditors but it may very well disrupt other things like investor confidence in municipal bonds issued by local governments. The effect of filing for bankruptcy would be just as devastating as a default on bond payments in terms of investor confidence. Furthermore, filing for bankruptcy would also shut a town out of debt markets and likely jeopardize the reputation of the city leaders.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

more+
less-

Tampa Bay Bankruptcy Center, P.A. on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×