Our experience includes the following matters:

  • We represented affiliates of a large European bank in the City of Detroit’s Chapter 9 bankruptcy case. In 2005 and 2006, the client purchased more than $500 million of certificates issued as part of a transaction designed to satisfy the City’s pension liabilities. Ballard Spahr was involved in all aspects of the City’s bankruptcy case and participated at the forefront of most of the litigation until late in the process when we assisted our clients in executing a series of secondary market transactions thereby eliminating their position.

  • We represented an affiliate of a large European bank in the City San Bernardino's Chapter 9 bankruptcy case. In 2005 the client purchased more than $50 million of pension obligation bonds issued by the City with respect to its unfunded pension liabilities. Since being engaged, Ballard Spahr has been involved in all aspects of the City’s bankruptcy case and has participated at the forefront of much of the litigation. A settlement has been reached with the City regarding treatment of the bonds under the City's plan, a treatment much more favorable than that originally proposed by the City.

  • We represented a major financial institution, who was the largest owner of bank bonds when the liquidity facilities securing Jefferson County, Alabama, sewer revenue bonds were drawn. The representation involved multiple forbearance periods and structuring proposals; the commutation of a bond insurance policy issued by a bond insurer who itself had been placed into receivership by New York insurance regulators; state court litigation relating to the appointment of a receiver and exercise of other remedies; the Chapter 9 bankruptcy; and distressed debt trading. The Jefferson County case involved federal government claims and settlements related to kickbacks and other illegal activities, as well as failure to disclose material information.

  • We participated as underwriter's counsel to the 2016 issuance of $15.5 million tax and revenue anticipation notes issued by the City of Compton, California.

  • One of our attorneys is serving as special tax counsel to the trustee in connection with the initial debt restructuring of the Puerto Rico Electric Power Authority that involves an ad hoc committee of bondholders. The workout is approximately $8.3 billion.

  • We served as special tax counsel to the trustee for bondholders in connection with a workout of a multibillion-dollar municipal bond issuer.

  • We served as bond counsel on the City of Bethlehem’s long-term tax-exempt working capital financing, which was successfully undertaken in connection with a broad financial recovery plan developed and implemented by the prior administration. That transaction, which required for federal tax purposes the projection of acute liquidity shortages in each of the succeeding five years, was part of a broader financial recovery plan—designed by the City and its financial advisor—that included debt restructurings, workforce reductions, spending cuts in all departments, significant tax and fee increases, and major tax increment financing of the City’s Bethlehem Steel Redevelopment Area to promote significant economic development. These financings closed between 2010 and 2014 totaled more than $87 million.

  • We represented the bond trustees in a major default and workout involving revenue bonds guaranteed by a large American city to finance improvements to a municipal utility. We have assisted the trustees in the preparation of default notices, document review and interpretation, and discussions and negotiations with the issuer and bond insurer.

  • We represent a special service district established at the request of seven developers that filed for protection under the U.S. Bankruptcy Code. We succeeded in getting the bankruptcy case dismissed and the case remanded to the state district court. We also secured a dismissal of the plaintiffs’ constitutional claims that their rights to due process were being violated.