Municipal Insolvency Practice
Many U.S. municipalities are facing unprecedented confluence of economic misfortunes:
- financial pressures brought on by unfunded mandates;
- reduced funding by state and federal sources;
- long-term legacy obligations;
- collective bargaining agreements;
- over-taxed residents and businesses; and
- declining home prices with the simultaneous increase in foreclosures.
In many cases, this convergence has confounded efforts by municipal governments and other political subdivisions to address funding obligations for operations and other commitments into the future. As a result, what once seemed unfathomable for municipalities is now under consideration by some: Bankruptcy.
Fox Rothschild attorneys are well-versed in the complexities surrounding Chapter 9 bankruptcy filings for governmental and quasi-governmental units and can assist clients in evaluating the various courses of action available.
Fox Rothschild's multidisciplinary municipal insolvency practice assists clients with the wide range of issues—including debt restructuring, bankruptcy, public finance, municipal law and governance, labor law and government contracts—that are interwoven with a Chapter 9 filing. We provide thorough and professional representation to all parties involved in a filing, 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.
Financial Restructuring & Bankruptcy