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Municipal Debt Restructuring

We know firsthand what public agencies face when confronting financial hardships, including the political and economic factors. When the situation warrants a restructuring of municipal debt to avoid or mitigate a bankruptcy, we provide efficiency, in both cost and services, so our clients can see the light at the end of the tunnel.

Our restructuring attorneys have experience in dealing with the rights of secured creditors and lienholders, the treatment of executory contracts and unexpired leases, the purchase and sale of assets, mergers and acquisitions, claim resolution and litigation, and the prosecution and defense of avoidance actions.

We offer clients services to facilitate the restructuring of municipal debt through workouts, pension reform and other opportunities. Our team helps clients formulate a sound plan so distressed financial situations no longer seem daunting and overwhelming. We identify appropriate remedies that are unique to each clients’ situation, putting clients on the road to recovery in the most responsible and expedient manner possible. We evaluate market trends and risks as well potential streams of revenue that will bolster their financial health.

Key to an effective recovery plan is ensuring that our clients’ staff understands and can follow through on the process, meeting scheduled repayments on all bonds, notes and municipal securities, valuating swaps for disclosure purposes and monitoring credit risks and exposure levels. We also advise clients on strategies for renegotiating their contracts, selling assets and setting minimal staffing levels to help them establish financial stability.

Creditor’s Rights

In addition to budget shortfalls, many of our public agency clients are increasingly finding themselves in the creditor’s position in insolvency proceedings when developers or vendors go bankrupt. Our attorneys have the knowledge to advise clients on potential pitfalls and how to maximize the possibility for a meaningful recovery.

For example, the City of Pittsburg was faced with a multimillion dollar project abandoned by the bankrupt developer in the heart of Old Town Pittsburg. We represented the City and its redevelopment agency in extensive negotiations with competing interests of the bank that resulted in the Redevelopment Agency owning the project free and clear, with construction now completed.