As ever-increasing budget deficits throw them into precarious financial positions, a debate has sprung up over whether states should be allowed to file for bankruptcy, as cities are allowed to do. Lawmakers, bankruptcy professionals and municipal finance investment bankers who are in favor of bankruptcy for states argue that it may be the only feasible solution left to them. Opponents remind them that states are considered sovereign entities and thus cannot submit to the federal jurisdiction of the Bankruptcy Code.
In this white paper, Too big to fail or too big to bail (out), Grant Thornton's Corporate Advisory & Restructuring Services partners Martha E.M. Kopacz and Michael Imber outline the many pros and cons of the issue and suggest a framework for continuing the debate in a way that leads to a reasoned opinion.
To download the White Paper in full please click here,
