We strategize with our clients to develop cost-effective restructuring plans that are realistic given a local government’s longer-term budgetary needs and revenue expectations. We provide thorough and professional representation to all parties involved in the process, including municipal or similar governing bodies (such as municipalities, counties and other political subdivisions, agencies and authorities that provide services funded by tax levies and government-sponsored debt); issuers; insurers or owners of government debt; providers of goods or services to public entities; and other parties to a government contract affected by the governmental unit's financial distress.
We counsel clients regarding the many requirements, benefits and pitfalls of using Chapter 9, including:
- Specific government entities that may file Chapter 9
- Statutory authority requirements
- Conditions of individual state laws
- Test to determine insolvency
- Ensuring good faith attempts to negotiate alternatives before filing Chapter 9 relief
- Calculating hidden costs, such as alienating existing businesses, the effect on the ability to attract new businesses and the impact on a city to raise cash in the capital markets into the future.