Nixon Peabody, LLP has issued a new report at BDA’s request for BDA members, entitled Detroit in Context: Understanding Municipal Defaults and Bankruptcy. The report, available [here], provides an overview for BDA members regarding:
- How Chapter 9 bankruptcy law may apply in Michigan and other states;
- Core issues at stake in the Detroit bankruptcy;
- The power and limitations of Chapter 9 bankruptcy;
- Differences among municipal defaults, remedies and bankruptcies;
- Precedents from the small universe of prior municipal bankruptcies;
- Implications for bondholder disclosures.
We hope this information is helpful. We will continue to track critical implications of Detroit’s bankruptcy for bondholders and for other cities seeking to mitigage financial distress. Please feel free to contact the BDA with any questions or concerns.
Click here for the full report.
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