Municipal Bankruptcy

First Circuit’s Traditional Approach to Section 552 Cuts Off Bondholders’ Liens

Employer contributions to Puerto Rico’s retirement system did not qualify as ‘special revenues,’ with the result that bondholders’ liens were cut off on the filing date.
Court: 

Supreme Court Won’t Hear a Case to Compel Paying Puerto Rico Bondholders Currently

Supreme Court let a First Circuit opinion stand that barred bondholders from compelling payment during Puerto Rico’s restructuring under PROMESA.

U.S. Trustee May Not Appoint an Unsecured Committee in a Municipal Bankruptcy

California judge sides with former Bankruptcy Judge Steven Rhodes by holding that the U.S. Trustee does not have statutory power to appoint an unsecured committee in a chapter 9 case.

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