Chapter 9 Municipal Debt Adjustment

Municipalities facing debts that they are unable to pay have an option at their disposal through the bankruptcy court in the form of a Chapter 9 filing. This path allows a city, county, or other government entity to continue providing essential services to residents while forming and implementing a plan to adjust its debts. SulmeyerKupetz has been involved in Chapter 9 matters with such municipalities as Orange County, the City of San Bernadino, and the Ventura Port District.

Chapter 9 Municipal Debt Adjustment

The firm’s work in Chapter 9 has included the following representative matters:

  • Managed successful Chapter 9 plan as counsel to Tri-City Mental Health Center, a government entity formed by three cities for the provision of mental health services, allowing the entity to move forward on a viable basis.
  • Represented Ventura Port District as the first government entity ever to file for Chapter 9 in the Central District of California, securing confirmation of plan of debt adjustment over the objection of the primary creditor.
  • Negotiated consensual arrangement on behalf of firefighters’ union during the City of San Bernardino’s Chapter 9 case.
  • Served as creditors’ counsel to a group of cities with claims against Desert Hot Springs during the municipality’s Chapter 9.
  • Represented Town of Mammoth Lakes in negotiations related to out-of-court debt restructuring.
  • Worked on behalf of Orange County Transportation Authority in connection with the Chapter 9 case of Orange County.
  • Handled successful out-of-court restructuring for California city, allowing the municipality to reach an agreement with judgment creditor and avoid Chapter 9.
  • Represented multiple local public entities in evaluating potential Chapter 9 filings and in out-of-court negotiations with creditors, workouts, and restructurings that have allowed them to avoid Chapter 9.

Lawyers to Contact:

To find out how we can help your municipality, government entity, or related organization navigate Chapter 9 matters, please contact our firm by calling the office at 213.626.2311 or by emailing the attorneys below.