Chapter 9 Municipal Bankruptcy Representations

Representation of Financial Guaranty Insurance Company (FGIC), a financial guaranty insurance company,  in connection with the chapter 9 case of the City of Detroit and, in particular, with respect to the financial insurance policies issued by FGIC insuring approximately $1.1 billion of pension obligation certificates of participation, certain related swap contract obligations, $136 million of sewer system revenue bonds, and $377 million of water system revenue bonds, issued by or related to the City of Detroit.  Weil’s expertise in not only bankruptcy, but also financial guaranty insurance, municipal finance, and complex litigation, were invaluable in helping FGIC navigate the unprecedented challenges presented by the largest chapter 9 case ever filed.

Representation of National Public Finance Guarantee (NPFG), a subsidiary of MBIA, in the chapter 9 case of the City of San Bernardino, in its capacity as municipal bond insurer.  Weil has participated in mediation sessions involving the City to ensure a favorable outcome regarding the treatment of municipal debt insured by NPFG and has worked with NPFG’s financial advisors regarding possible cost-savings measures for the City.

Representation of National Public Finance Guarantee (NPFG), a subsidiary of MBIA, in the chapter 9 case of the City of Stockton.  Weil assisted in the successful negotiation of settlement terms with the City of Stockton regarding the treatment of claims relating to certain debt obligations insured by NPFG that were superior to the terms originally dictated by the City.  Weil simultaneously negotiated a favorable settlement of an unlawful detainer proceeding involving certain real property collateralizing the NPFG-insured municipal debt. Weil was a major contributor to the formulation of the City’s proposed plan of adjustment, which incorporated, by reference, the terms of the settlements negotiated by Weil.