Bankruptcy and Financial Restructuring

Chapter 9 Bankruptcies: Prompting Legislatures to Protect Municipal Bondholders

12/21/2012 | Article

By John S. Mairo and Kelly D. Curtin

IN THE AFTERMATH of the economic recession, US cities, towns and other municipalities facing the threat of budgetary and financial catastrophe are turning to Chapter 9 of the US Bankruptcy Code for protection. Previously rarely utilised, Chapter 9 allows qualifying municipalities to 'adjust' debts by means of 'a plan of adjustment'.

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