Lisa's Feed
Aug 7, 2014

U.S. municipal bond funds post another week of inflows -Lipper

WASHINGTON, Aug 7 (Reuters) – Demand for U.S. municipal
bonds has remained strong throughout the summer, a key
investment season, with municipal bond funds posting $16.6
million in net inflows for the week ended Aug. 6, according to
Lipper data.

That followed net inflows of $418.6 million and $686.2
million the previous two weeks and brought the four-week moving
average to inflows of $319.8 million, according to Lipper, a
Thomson Reuters company.

Aug 6, 2014

U.S. appeals court says Baltimore pension reform legal

WASHINGTON, Aug 6 (Reuters) – The U.S. Court of Appeals for
the Fourth Circuit upheld a major reform made to Baltimore’s
police and firefighter pension plan on Wednesday, shedding light
on how judges may view the recent raft of changes in public
retirement funds around the country.

The court vacated a previous decision that the reform had
violated the U.S. Constitution’s contract clause, and also
decided the change was permissible under Maryland’s state
constitution.

Jul 28, 2014

Hold-out creditor argues for dismissal of Detroit bankruptcy case

WASHINGTON, July 28 (Reuters) – One of the biggest hold-out
creditors in Detroit’s bankruptcy will argue next month for a
dismissal of the historic case to lead to more equitable
treatment of all the city’s creditors, according to a report
obtained by Reuters on Monday.

Detroit’s plan to adjust $18 billion of debt has been
approved by most, but not all, of the city’s unsecured
creditors, bringing to center stage the possibility of a ‘cram
down,’ where the plan could be imposed on objecting creditors if
U.S. Bankruptcy Judge Steven Rhodes determines it is fair and
feasible.

Jul 25, 2014

Detroit’s revised bankruptcy plan sheds light on bonds, monitor

July 25 (Reuters) – Detroit released a revised debt
adjustment plan on Friday that details the role of a
post-bankruptcy monitor and sets up a reserve fund to possibly
enhance recoveries for certain creditors.

The fifth revision of the plan filed in U.S. Bankruptcy
Court creates a litigation trust related to Detroit’s lawsuit
seeking to void $1.45 billion of pension certificates of
participation (COPs) sold in 2005 and 2006.

Jul 25, 2014

Detroit revs up for approval of bankruptcy plan

July 25 (Reuters) – Detroit could be on the fast track to
complete the final, crucial phase of its historic bankruptcy
case, as settlements with key creditors line up and city workers
and retirees demonstrate overwhelming support for cost-saving
retirement benefit changes.

While a small, hard-core group of creditors continues to
hold out for a better deal, the support among workers and
retirees may help push through the city’s plan to adjust $18
billion of debt and exit the biggest Chapter 9 municipal
bankruptcy in U.S. history. It has moved the possibility of a
“cram down,” where a bankruptcy plan is imposed on objecting
creditors, to center stage.

Jul 22, 2014

Detroit workers, retirees vote in favor of city’s debt plan

By Karen Pierog and Lisa Lambert

(Reuters) – Detroit’s city workers and retirees overwhelmingly agreed to accept the city’s debt adjustment plan, according to results filed late Monday, potentially clearing the way for the struggling city to exit bankruptcy in the next few months.

Documents filed in U.S. Bankruptcy Court show the city’s current and retired police and fire employees, along with other active and retired city workers, will accept pension reductions to help adjust $18 billion in debt in the largest-ever U.S. municipal bankruptcy case. Most bondholders rejected the plan, along with insurers backing some of the debt.

Jul 21, 2014

Detroit bankruptcy plan is feasible, but concerns remain -report

July 21 (Reuters) – Detroit’s plan to adjust $18 billion of
debt and exit the biggest municipal bankruptcy in U.S. history
is feasible, according to an expert witness report that also
expressed concern that the costs of its rapid restructuring may
hurt the city’s ability to fix its “broken operations.”

Martha Kopacz, a senior managing director at Phoenix
Management Services in Boston, who was chosen by U.S. Bankruptcy
Judge Steven Rhodes in April as an expert witness in the case,
concluded in her July 18 report obtained by Reuters on Monday
that the plan’s revenue, expense and payment assumptions are
reasonable.

Jul 15, 2014

Puerto Rico bonds cap turbulent week with mild price rise

WASHINGTON, July 11 (Reuters) – Prices on Puerto Rico debt
drifted higher on Friday and trading of the junk-rated bonds
slowed, calming some of the recent market turbulence inspired by
the island’s troubled power authority.

Late on Thursday the cash-strapped utility, the Puerto Rico
Electric Power Authority (PREPA), disclosed it had used about
$41.6 million from its reserves to make a July 1 bond payment of
$471.56 million. The filing was a worrying indication of the
independent agency’s financial deterioration to investors who
believe PREPA will soon default or restructure its debt.

Jul 1, 2014

US municipal market on edge over Puerto Rico power authority payment

WASHINGTON, July 1 (Reuters) – Moody’s pushed its rating on
Puerto Rico’s debt deeper into junk territory on Tuesday and
prices of the island’s troubled electric authority’s bonds
plunged as investors awaited word on whether they would receive
a scheduled payment on the securities.

The ratings cut and the fall in Puerto Rico Electric Power
Authority, or PREPA, bonds comes just days after the territory
cut assistance to its public corporations and created a
bankruptcy-like process for restructuring their debts.

Jun 30, 2014

Puerto Rico worries deepen on lawsuits, bond selloff

By Tim McLaughlin and Lisa Lambert

(Reuters) – Puerto Rico’s troubles continued to worsen on Monday after mutual funds holding about $1.7 billion in its debt sued the commonwealth while other investors sold the bonds on concerns the island’s finances could deteriorate further.

The flashpoint for the lawsuit brought by two large institutional holders is a law passed last week that allows Puerto Rico’s public corporations – primarily its troubled electric power authority known as PREPA – to restructure their debt. It sparked a sharp selloff in these agency bonds that extended on Monday.