CAT | bankruptcy and default
The Grand Jury of San Diego issued a report of this title yesterday. Also, at yesterday’s GFOA (Government Finance Officers Association) business meeting, the group voted that the Government Accounting Standards Board should stay away from the topic of sustainability. The only conclusion one can draw from the Grand Jury report is: the city of [...]
See this post on Reuters for discussion about Antioch, latest city in California to talk bankruptcy. There is a bill, sponsored by state senator Mendoza, AB155, that would require cities to go through the state (via the California Debt and Investment Advisory Commission, CDIAC). The bill was referred last week by the Senate appropriations committee [...]
See today’s op ed by Dan Miller, Harrisburg’s controller.
The Illinois Comptroller’s April report is scary reading. The state is $4.5 billion in arrears on payments to vendors and others (like school districts and service providers) with no end in sight. The Comptroller expects 2011 to be worse. The following chart from the report looks to me like a deteriorating structural imbalance moving towards a delicate liquidity [...]
Add Xenia Rural Water District’s to the short but growing list of over-leveraged municipal borrowers. With $143 million in debt and about 9,000 customers, the unfolding socio-gram includes bondholders, bond insurers CIFG and Assured Guaranty, the US Department of Agriculture, Bank of America, and last, but not least, the ratepayers. A $5.2 million note to [...]
An article about upstate New York town of Kingston and their discussion of fiscal stress, union contracts and the debate over Chapter 9 bankruptcy.
We have two opposing camps in the muni-market at the moment: those who say it is the next systemic shoe to drop and the rating agencies that are systemically raising ratings.
Which is right?
We have moved from a market that has had heavy intermediation from the bond insurance companies to one where investors are on their [...]
I just came across this blog from John Moorlach, Orange County. Scroll down for a “five year lookback” on the discussion about San Diego, thought you might find it of interest.
Westfall Township, Pennsylvania filed a Chapter 9 bankruptcy petition in April, 2009 and the court confirmed a reorganization plan in March, 2010. According to the law firm that handled the case:
Westfall Township, located in Pike County, PA, was saddled with a $20 million debt due to a prior government’s mistreatment of a developer. Without the [...]
I am adding a link to this article that updates Toledo’s fiscal situation. (See prior post.) The city is wrestling with a budget gap and trying to negotiate with unions over compensation. Ohio is a state that has a fiscal emergency program and municipalities may not file for bankruptcy without going through the state. The state’s [...]