Restructuring in California: Rare Defaults; Growing Pension Burdens – Conference Coverage

September 24, 2012 – In The News

Michael A. Sweet was mentioned for his participation in the UC Berkeley conference on California's Fiscal Crisis: Prospects for Deficit Reduction and Pension Reform in the Golden State.

Sweet said that on any given day, there are more Chapter 11 filings than there have ever been Chapter 9 filings. He also said that the current dispute over whether Stockton should be allowed to file Chapter 9 is the first such dispute in the state. He pointed out that AB 506’s requirement that debtors enter discussions with creditors is already enshrined in the bankruptcy code. To people who thought AB 506 was a response to get municipalities from filing bankruptcy “willy-nilly,” he added, “my response is we already had that.”