CHICAGO, May 21 (Reuters) – Banks that entered into credit
and other deals related to variable-rate debt sold by the city
of Chicago have agreed not to immediately demand $2.2 billion in
payments triggered when the city’s rating was cut to junk by
Moody’s Investors Service, according to city documents.
Under new forbearance agreements with banks, the city has
until June 8 to convert $805.7 million of general obligation,
variable-rate debt into fixed-rate bonds, according to the
amended bond documents posted on Thursday.
CHICAGO (Reuters) – Chicago could reduce a looming $550
million hike in contributions to its police and fire retirement
systems due next year by extending the deadline for reaching a
90-percent funded level, the city disclosed in bond documents on
The city laid out options for dealing with the payment in
documents relating to its plan to convert about $805 million of
variable-rate debt into fixed-rate bonds to avoid accelerated
debt payments and termination fees to banks.
CHICAGO (Reuters) – Illinois’ Republican legislative leaders
said on Tuesday that lawmakers in their party want to help
Chicago address a looming $550 million pension payment increase
in the waning days of the legislative session.
“We’d like to be partners in trying to fix that situation
as well,” Senate Republican Leader Christine Radogno said at a
news conference at the state capitol in Springfield aimed at
pushing Democrats who control the House and Senate to negotiate
ways to reform and balance the state’s ailing budget.
CHICAGO (Reuters) – Major banks that are party to Chicago credit agreements are giving the city time, despite their right to demand $2.2 billion in immediate payments after Moody’s Investor Service this week downgraded Chicago’s rating to junk.
“At this time, the city has not been informed that the counterparties intend to accelerate payments and termination fees, and we are working with our counterparties to address any issues raised by Moody’s decision,” a city source said.
CHICAGO (Reuters) – Chicago began an uphill battle in court
on Wednesday to keep its cost-saving pension reform law from
meeting the same fate as an Illinois law that was declared
unconstitutional last week by the state supreme court.
The city is trying to salvage a 2014 law aimed at stopping
two of its four retirement systems from running out of money. It
is also dealing with the aftermath of Tuesday’s credit rating
downgrade to “junk” by Moody’s Investors Service.
CHICAGO, May 12 (Reuters) – Moody’s Investors Service on
Tuesday pushed Chicago’s credit rating into the “junk” category,
citing limited options for easing the city’s growing unfunded
pension liability after a state court last week invalidated a
state pension reform law.
The downgrade of Chicago’s $8.1 billion of general
obligation bonds moves the city’s rating down two notches, to
Ba1 from Baa2 with a negative outlook. Combined with rating cuts
for city revenue debt, Moody’s said, its actions could trigger
up to $2.2 billion in accelerated payments on some of that debt.
By Karen Pierog
(Reuters) – Detroit’s public sale of $275 million of bonds
that financed the city’s exit from bankruptcy has been delayed
but should take place no later than early August, a city
official said on Monday.
Detroit is taking advantage of a new law that should give
the bonds investment-grade ratings that could save the city
between $20 million and $30 million over the life of the issue,
according to the office of Michigan Governor Rick Snyder, a
CHICAGO (Reuters) – Illinois Governor Bruce Rauner faces a
formidable challenge in his bid to reform public worker pensions
by changing the state constitution, and even if he succeeds the
move may not resolve the state’s pension funding woes for years
Illinois Supreme Court on Friday voided a 2013 law that cut
pensions, putting the onus on the newly elected Republican
governor to solve the state’s budgetary and pension problems by
pushing through his long-shot Plan B.
CHICAGO (Reuters) – Illinois Governor Bruce Rauner faces a formidable challenge in his bid to reform public worker pensions by changing the state constitution, and even if he succeeds the move may not resolve the state’s pension funding woes for years to come.
Illinois Supreme Court on Friday voided a 2013 law that cut pensions, putting the onus on the newly elected Republican governor to solve the state’s budgetary and pension problems by pushing through his long-shot Plan B.
(Reuters) – Illinois’ supreme court has overturned the
state’s 2013 pension reform law, which reduced pension costs and
increased retirement ages, according to a copy of the decision,
sending the state’s bonds lower.
The state has the worst-funded pension system and the lowest
credit ratings of all 50 states and has contended that pension
costs are making it difficult to fund services such as
healthcare and public safety.