July 11, 2011

Jason Bank authors “Overview of Chapter 9 Bankruptcy”

Whether Chapter 9 filings will become a reality in Michigan remains to be seen. Governor Rick Snyder has recently announced that he does not anticipate that any municipal bankruptcy filings will take place. But until cities and towns achieve longterm solutions to resolve their cash-flow issues and debt obligations, one can never say never. At a minimum, negotiations between local governments and creditors like trade unions will likely take place under the threat of a potential Chapter 9 filing. This article provides an overview of the fundamental principles of Chapter 9 municipal bankruptcy proceedings.

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