Manatt bankruptcy partner Ivan Kallick, and government and regulatory partner Randall Keen, and associate Jacob Itzkowitz authored an article for Public Management Magazine discussing the impact of COVID-19 on Chapter 9 bankruptcies, and the options that the current crisis has created for municipalities that might be contemplating bankruptcy. In the article, the authors noted that even in a fiscal crisis, “cities and counties that take a proactive approach and act decisively can take advantage of [the COVID-19] crisis to tackle debt and pension obligations that might pose greater problems down the road.” Specifically, they highlighted that affected municipalities have the power to reject executory contracts, including collective bargaining agreements, and potentially restructure their pension obligations.
Read the article here.