Document Type
Article
Publication Date
Fall 2013
ISSN
0043-1621
Publisher
Wayne State University Law School
Language
en-US
Abstract
Modern Chapter 9 litigation has been characterized by extraordinary protections for municipal bondholders, and Central Falls is no exception. Although not well understood by politicians, fear of contagion has encouraged the adoption of legal arrangements that have limited the bankruptcy courts’ ability to include bondholders in the cost of restructuring municipal debt. This preference for bondholders (and, by extension, their insurers) has meant increased misery for taxpayers and retirees. Given that all of these actors appear to have been complicit to some degree in the creation and maintenance of the fiscally imprudent conditions that triggered bankruptcy and that evidence of true contagion is modest, it is hard to justify special protections for bondholders.
Recommended Citation
Maria O'Brien,
Central Falls Retirees v. Bondholders: Assessing Fear of Contagion in Chapter 9 Proceedings
,
in
59
Wayne Law Review
525
(2013).
Available at:
https://scholarship.law.bu.edu/faculty_scholarship/194
Included in
Bankruptcy Law Commons, Insurance Law Commons, Labor and Employment Law Commons, Retirement Security Law Commons, Securities Law Commons, Taxation-State and Local Commons
Comments
Boston University School of Law, Public Law & Legal Theory Paper No. 14-21