The webinar will serve as an introduction to Chapter 9 of the Federal Bankruptcy Code and, where applicable, will compare and contrast Chapter 9 as a tool for fiscally distressed municipalities to state-law fiscal recovery mechanisms, particularly Pennsylvania’s Act 47. Particular areas of focus will include Chapter 9’s impact on different types of bonds, pensions and collective bargaining agreements and general creditors of a municipality. Unique features of Chapter 9 (and limitations thereof) in comparison to Chapter 11 of the bankruptcy code (which addresses corporate reorganizations) will be discussed. Reasons for the historically relatively low usage of Chapter 9 and trends in recent cases will also be touched upon.
Mark Vacha, Eric Scherling