Law360, New York (February 24, 2016, 10:09 AM EST) -- To the extent authorized by a state, Chapter 9 of the Bankruptcy Code allows municipalities (defined as "political subdivision or public agency or instrumentality") of that state — including public hospitals — to reorganize their debts in the face of insolvency. Municipalities achieve this goal through implementation of a court-approved plan of adjustment. Although the standards for confirming (approving) a Chapter 9 plan resemble the well-established standards for confirming a Chapter 11 plan, differences exist. These differences can be particularly impactful on the ability to confirm a plan that does not pay creditors in full over their objection. Accordingly, public hospitals should be aware of Chapter 9's different standards for ensuring continuity of operations and preserving funds to enable continued operations and necessary improvements....