Category: Capital markets

Out of the muck? Part 5, What it means for municipal bankruptcy and Detroit

10 January, 2014 (09:00) | Bankruptcy, Bonds, Capital markets, Detroit, Finance, Infrastructure, Jefferson County, Municipal bankruptcy, Municipal infrastructure, Recapitalization, Speculation, US News, Workouts |

[Continued from yesterday's Part 4 and the preceding Part 1, Part 2, and Part 3.]   By:David A. Smith   By late November, after repricing the current-payment bonds because of a rise in interest rates, the Jefferson County bankruptcy reorganization plan was approved by all parties, and ready to close, pending only the sale of the […]

Out of the muck? Part 4, court retains authority for forty years

9 January, 2014 (09:00) | Bankruptcy, Bonds, Capital markets, Detroit, Finance, Infrastructure, Jefferson County, Municipal bankruptcy, Municipal infrastructure, Recapitalization, Sewer systems, Speculation, US News, Workouts |

[Continued from yesterday's Part 3 and the preceding Part 1 and Part 2.]   By:David A. Smith   As we’ve seen so far, the Jefferson County bankruptcy reorganization had proceeded with commendable logic and celerity to a proposed resolution last June, only to have interest rates move the wrong way (whenever I do a deal, interest rates […]

Out of the muck? Part 3, Repricing the Triple-B

8 January, 2014 (09:00) | Bankruptcy, Bonds, Capital markets, Detroit, Finance, Infrastructure, Jefferson County, Municipal bankruptcy, Municipal infrastructure, Recapitalization, Sewer systems, Speculation, US News, Workouts |

[Continued from yesterday's Part 2 and the preceding Part 1.]   By:David A. Smith   At the end of June, 2013, everyone involved with Jefferson County‘s bankruptcy likely heaved sighs of relief, for the county had filed a plan that had pre-approval by the large creditor groups – presumably, enough of each creditor class to ensure […]

Out of the muck? Part 2, 33% rate increase in four years

7 January, 2014 (09:00) | Bankruptcy, Bonds, Capital markets, Detroit, Finance, Infrastructure, Jefferson County, Municipal bankruptcy, Municipal infrastructure, Recapitalization, Sewer systems, Speculation, US News, Workouts |

[Continued from yesterday's Part 1.]   By:David A. Smith   In yesterday’s post, we revisited Alabama’s Jefferson County, which in November, 2011 became what was then the largest municipal bankruptcy in US history (until overtaken by Detroit), and which in December, 2013 emerged from that bankruptcy; that post laid the groundwork – sixty cents on […]

Out of the muck? Part 1, sixty cents on the dollar

6 January, 2014 (12:22) | Bankruptcy, Bonds, Capital markets, Detroit, Finance, Infrastructure, Jefferson County, Municipal bankruptcy, Municipal infrastructure, Recapitalization, Sewer systems, Speculation, US News, Workouts |

By:David A. Smith   Two years ago, Jefferson County, in what was then the largest municipal bankruptcy in American history (since overtaken by Detroit), deployed the ‘financial nuclear option’ and filed for municipal bankruptcy. Now JeffCo is emerging, and the story of its debt restructuring, emergence from bankruptcy (on December 3, 2013), and obligations for […]