We use cookies to give you the best online experience. By using our website you agree to our use of cookies in accordance with our cookie policy. Learn more here.Close Me
The bankruptcy court in the City of Harrisburg's Chapter 9
proceeding held a hearing on Tuesday, November 1 on the Mayor's
motion for an order clarifying that the City had the ability to pay
its debts in the ordinary course. The court found that given the
limitation on its jurisdiction under Chapter 9 of the Bankruptcy
Code and given that Bankruptcy Code Section 363 (which deals with
generally with the use, sale or lease of property) is not
incorporated into Chapter 9, the City does have the authority to
pay its vendors in the ordinary course, including vendors with
amounts owed pre-petition (i.e., before the bankruptcy).
The City Council's attorney orally moved to delay the
briefing and hearing schedule on the issue of whether the City was
eligible to file its Chapter 9 petition. The court declined to
extend the November 23 hearing date, indicating that the issues
were limited to whether Harrisburg had specific authority under
state law to file the bankruptcy petition and whether the City
Council had the power to file the Chapter 9 petition on behalf of
the City. The judge noted that these were the central issues raised
by the objecting governmental parties (the Mayor's office, the
Commonwealth and Dauphin County) and that the objections filed by
the private parties (the unions, the bond trustee and the insurers)
were largely duplicative. The parties did agree, however, to extend
the briefing schedules. As a result, replies to the objection to
the filing are due November 14, replies by the objecting parties
are due November 19, and the hearing will go forward as scheduled
on November 23.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
It may seem counter intuitive to discuss channel conflict in a soft economy. When most of our clients think about conflict management, they assume they will need controls on the channel and/or a reduction in channel partners as the solution.
The Regulated Investment Company Modernization Act of 2010, P.L. 111-325 (the "Act"), was signed into law by President Obama on December 22, 2010 (the "Date of Enactment").
Title IV of the Jumpstart Our Business Startups Act (JOBS Act) directs the SEC to write regulations providing for an exemption from Securities Act registration.
