The Impact of PROMESA on Creditors

On June 30, 2016, the United States Senate passed the “Puerto Rico Oversight, Management and Economic Stability Act” (“PROMESA”) and it was quickly signed into law by President Obama.[1] PROMESA enables the Commonwealth of Puerto Rico and its public corporations and other instrumentalities in financial distress to restructure their debt.

Filed under:
Puerto Rico, USA, Insolvency & Restructuring, Public, Orrick, Herrington & Sutcliffe LLP, Conflict of interest, Board of directors, Budget, Debt, Balanced budget, US Senate, US House of Representatives, US House Committee on Natural Resources, US Senate Committee on Energy and Natural Resources
Authors:
Lorraine S. McGowen
Location:
Puerto Rico, USA
Firm:
Orrick, Herrington & Sutcliffe LLP
Pension reform — the time has come, the time is now

As Dr. Seuss once famously wrote (Marvin K. Mooney, Will You Please Go Now), “THE TIME HAS COME, THE TIME IS NOW”. Good faith efforts to bargain with Chapter 9 of the Bankruptcy Code in the foreground must begin now if we want to emerge from this financial crisis.  

Filed under:
USA, Employee Benefits & Pensions, Insolvency & Restructuring, Public, Saul Ewing LLP, Bankruptcy, Debtor, Trade union, Debt, Good faith, Collective bargaining agreements, Bond credit rating, Municipal bond, Balanced budget, US District Court for Eastern District of California
Authors:
James A. Chatz , Marc S. Zaslavsky
Location:
USA
Firm:
Saul Ewing LLP
City of Vallejo bankruptcy produces key rulings

The bankruptcy case of the City of Vallejo, Calif., the largest chapter 9 case filed since the Orange County case 15 years ago, continues to produce significant decisions on issues of first impression. First, following a lengthy trial, the Bankruptcy Court for the Eastern District of California, where the City's case is pending, found that the City met all of the qualifications necessary to be a municipal debtor under chapter 9. In re City of Vallejo, 2008 WL 4180008 (Bankr. E.D. Cal. Sept. 5, 2008).

Filed under:
USA, California, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Debtor, Trade union, Collective bargaining agreements, Balanced budget, National Labor Relations Board (USA), US Congress, Supreme Court of the United States, Ninth Circuit, United States bankruptcy court, Bankruptcy Appellate Panel, US District Court for Eastern District of California
Authors:
Mike C. Buckley
Location:
USA
Firm:
Reed Smith LLP