Detroit

This panel of Chapter 9 specialists will discuss the Chapter 9 bankruptcy process including eligibility under Chapter 9, the authority of the bankruptcy court, powers of the municipal debtor, the role of creditors, the automatic stay, issues peculiar to certain types of Chapter 9 debtors such as hospitals and cities and the recent developments in chapter 9.

Chapter 11 Track: Chapter 9s, Nonprofits and Other Nontraditional Restructuring Processes

The financial crisis has taken its toll on municipalities as evidenced by the increasing number of chapter 9 petitions over the last couple of years. Nonprofits have also faced challenges of their own and are increasingly finding themselves in bankruptcy court. This panel will explore the cutting-edge issues involved in these and other nontraditional restructuring processes.

An overview of the chapter 9 process, why municipalities do or do not file for chapter 9 protection, and the financial liabilities municipalities face, including bond debt, budget shortfalls, unfunded pension liabilities and costly union contracts. The discussion includes methods for restructuring bond debt under a plan of adjustment, issues related to general obligation bonds and special revenue bonds, how such claims are treated under Chapter 9, and related plan confirmation and valuation issues.

The panelists will discuss the “nuts and bolts” of chapter 9, including who can seek relief under chapter 9, which sections of the Code apply, plan formation and plan confirmation. The balance of the program will focus on recent developments in the law resulting from the recent significant increase in chapter 9 cases, as well as a discussion of the current financial strains on states and municipalities that should result in a further increase in filings.