Practical Guidance
Time-saving Solutions
Knowledgeable Insights

Select a format

Print Book :1 volume, softbound
ISBN: 9780769848426
Published: March 29, 2012
In Stock
Price
$134.00
QTY
International Order Inquiry

Product details

View a sample of this title using the ReadNow feature

This Collier Monograph presents a thorough treatment of chapter 9 of the Bankruptcy Code, which sets forth the bankruptcy relief available to state municipalities. Chapter 9 is a powerful yet underutilized restructuring tool available to financially challenged municipalities and public corporations within the United States. Chapter 9 provides an express means to compromise municipal obligations against a creditor's wishes. Chapter 9 also gives a municipality the ability to operate while in bankruptcy with relatively minimal judicial oversight, protected by the automatic stay, free of the risk of a competing plan, liquidation, the appointment of a trustee or many of the other controls that normally act as a check upon a debtor during a bankruptcy reorganization case.


The topics include:
• the purpose of municipal bankruptcy;
• nonbankruptcy alternatives to Bankruptcy Code chapter 9;
• comparison of chapter 9 to chapter 11;
• prepetition planning, including negotiations with creditors and creation of a restructuring plan;
• eligibility to file under chapter 9commencement of the chapter 9 case;
• a municipality's operating in chapter 9;
• reducing liabilities and exiting bankruptcy;
• history of chapter 9; and
• a listing of chapter 9 state authorizing statutes.

Authors / Contributors

Table of Contents

Section 1 Purpose of Municipal Bankruptcy


Section 2 Nonbankruptcy Alternatives to Chapter 9


Section 3 Comparison of Chapter 9 to Chapter 11


Section 4 Prepetition Planning



[1] Negotiations with Creditors


[2] Creation of a "Restructuring Plan"


[a] Types of Municipalities


[b] Long-Term Debt


[c] Operating Revenues and Expenses


[3] Role of a Financial Advisor


[4] Prepackaged/Prenegotiated Plan


Section 5 Eligibility

[1] Definition of a "Municipality" Under the Bankruptcy Code


[a] "Political Subdivision"


[b] "Public Agency"


[c] "Instrumentality"


[i] Sovereign Functions and Powers


[ii] Level of Public Control


[iii] State's Designation and Treatment


[2] Specific Authorization by the State to File Chapter 9


[a] Statutory Authorization


[b] Authorization by a Governmental Officer or Organization

[3] Insolvency


[a] Generally Not Paying Its Debts as They Become Due


[b] Unable to Pay Its Debts as They Become Due


[4] Desire to Effect a Plan


[5] Negotiations with Creditors


[a] Failed Negotiations Were in Good Faith


[b] Negotiations Were Impracticable

Section 6 Commencement of the Case


[1] Petition


[2] Selection of a Bankruptcy Judge


[3] List of Creditors


[4] Notice


[5] Objections to Petition, Order for Relief


[6] Dismissal of Case

Section 7 Operating in Chapter 9


[1] Limited Power of the Court


[a] No Interference with Political Governance


[b] No Interference with Property and Revenues


[2] Financing and Borrowing Money


[a] Increasing Revenue During Chapter 9


[b] Borrowing Money During Chapter 9


[3] Retention of Professionals


[4] Committees


[5] Utility Companies


[6] Role of the United States Trustee or Bankruptcy Administrator


[7] Automatic Stay


[a] Stay of Action Against Officers and Inhabitants


[b] Stay Does Not Operate as a Stay of Application of Pledged Special Revenues


[8] Avoiding Powers


[a] Preference Actions Pursuant to Section 547


[b] Fraudulent Transfers and Obligations Pursuant to Section 548


[c] Postpetition Transactions Pursuant to Section 549


[d] Liability for an Avoided Transfer Pursuant to Section 550


[e] A Creditor May Seek to Appoint a Trustee to Pursue Avoidance Actions


[f] Statute of Limitations in Chapter 9 Avoidance Actions


[9] Bondholders


[a] General Obligation Bonds


[b] Special Revenue Bonds


[i] Revenues from Transportation or Utility Projects


[ii] Special Excise Taxes


[iii] Incremental Taxes Attributable to a Specific Project


[iv] Revenues Arising from Particular Municipal Functions


[v] Taxes Levied to Finance a Specific Project


[c] Treatment of Bonds


[10] Assertion and Filing of a Claim


[a] Proofs of Claim


[b] Priority and Administrative Claims


[i] No Administrative Expense Claim for General Postpetition Operating Expenses


[ii] Unsecured Priority Claims Are Not Recognized Under Chapter 9


[iii] Payment of Adequate Assurance

[11] Disposition of Assets


[a] Section 363 Sale


[12] Assumption, Assignment, and Rejection of Executory Contracts


[a] Treatment of Executory Contracts in General


[i] What Is an Executory Contract?


[ii] Can the Contract Be Rejected?


[iii] Rejection of Executory Contract


[b] Collective Bargaining Agreements


[i] Bildisco


[ii] Section 1113


[iii] Orange County


[iv] Vallejo


[v] Practical Effect of Rejection


[c] Pension Plans


[i] Are Pension Plans Contracts?


[ii] Are Pension Plans Executory Contracts?


[iii] The Automatic Stay


[iv] Rejection in Chapter 9 and Claim Treatment

Section 8 Reducing Liabilities and Exiting Bankruptcy


[1] Plan of Adjustment


[a] Exclusive Right of Debtor to File Plan


[b] Confirmation Standards


[i] Section 901


[ii] Section 943


[iii] Section 1129(a)(2)–Compliance


[iv] Section 1129(a)(3)–Good Faith


[v] Section 1129(a)(6)–Regulatory Approvals


[vi] Section 1129(a)(8)–Acceptance


[vii] Section 1129(a)(10)–One Consenting Class


[viii] Section 943(b)(2)


[ix] Section 943(b)(3)


[x] Section 943(b)(4)


[xi] Section 943(b)(5)


[xii] Section 943(b)(6)


[c] Best Interests of the Creditors–Difference Between Chapter 11 and Chapter 9


[i] Best Interest of Creditors Test


[ii] Feasibility


[d] Section 1129(b)–Cramdown Requirements


[2] Discharge


[a] General Rule


[i] Effect of Discharge on Postpetition Debt


[b] Exceptions To Discharge


[3] Post-Bankruptcy Considerations


[4] Capital Markets



Appendix A  History of Chapter 9

Appendix B  Chapter 9 State Authorizing Statutes