Ala. High Court Backs Broad Ch. 9 Reading In Win For County

Law360, New York (April 20, 2012, 3:36 PM EDT) -- Any Alabama municipality may file for bankruptcy regardless of its kind of debt, the state's Supreme Court said Friday in a precedential decision that dashed the hopes of bank creditors fighting Jefferson County’s historic Chapter 9 proceeding.

The ruling deemed the city of Prichard eligible to file for bankruptcy despite the fact that its debt was not in the form of bonds. The question of whether bond debt was necessary for a Chapter 9 filing had been certified to the state high court by the U.S....
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.