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By Nick Brown
Reuters
An aerial view of Detroit, Michigan, April 18, 2012.
With more than $18 billion at stake in Detroit's restructuring, big law firms and other advisers are clamoring to represent the city's many creditors - including some advisers not exactly known for municipal work.
The city, which filed the largest-ever U.S. municipal bankruptcy on Thursday, tapped high-priced lawyers from Jones Day, financial advisers from Ernst & Young and restructuring consultants from Conway MacKenzie, court papers show.
For creditors and related parties, there is clearly a lot at stake. That means bondholders, insurers, retirees and others are sure to be accompanied in court by platoons of lawyers.
Detroit owes more than $8 billion in bond debt, and the insurers likely on the hook for those costs have already retained big-name law firms to take their cases.
Federal Guaranty Insurance Co tapped Weil Gotshal & Manges, according to a source close to the matter, who declined to be named because the information was not public as of Saturday. An attorney for Weil declined to comment.
David Dubrow, a lawyer at Arent Fox, confirmed on Saturday that he has been tapped by Ambac Financial Group.
And, according to the court's electronic docket, Syncora hired Kirkland & Ellis, known for its corporate bankruptcy work, while Assured Guaranty retained Winston & Strawn, and National Public Finance Guarantee Corp hired Sidley Austin.
Bond insurers will play a key role in Detroit's case. While a portion of the city's $1.13 billion in general obligation bonds are secured by city assets, about $651 million of it is secured only by the ability to raise taxes. The city's emergency manager, Kevyn Orr, has said he will treat that portion of the debt as an unsecured claim.
That classification, which has been largely untested in federal courts, is likely to be hotly contested and possibly litigated by bondholders or their insurers.
Detroit also owes $5.7 billion in unfunded healthcare and other benefits to retirees, and has asked the judge to form a committee to look out for their interests. The Department of Justice may also appoint a committee of unsecured creditors in the case. Both moves would mean opportunities for professional advisers. Continued...
The city needs to negotiate new labor deals with unions, and its pension funds are underfunded by $3.5 billion, providing yet more opportunities for attorneys to advise creditors.
Chapter 9, the section of the bankruptcy code that governs municipal bankruptcies, is attractive for advisers, provided there is money to pay them. Unlike in Chapter 11, where billing is subject to court and regulatory review, Chapter 9 allows bills to stay between the adviser and its client.
In corporate restructurings, creditors, judges and the Justice Department pore over fees line by line, and can raise objections to unnecessary or overpriced items. Over the past few years, the Justice Department has ramped up its policing of high fees and has required bankruptcy lawyers to disclose more.
In municipal bankruptcies, fees could be subject to disclosure under the Freedom of Information Act, but they do not need to be reported publicly in court.
"You're used to being in a world where you have to explain yourself, and suddenly you don't anymore," said a bankruptcy lawyer, who asked not to be named.
The catch is that, unlike in corporate bankruptcies, there is no mechanism under Chapter 9 to make the bankrupt entity pay certain creditors' fees. And corporate bankruptcies are generally more lucrative for advisers because there is often more money to go around.
But with $18.5 billion in debt, Detroit is an outlier among municipal bankruptcies, where advisers see the potential for high fees without the hassle of having to justify them in court.
A NEW FRONTIER
In the past, only a small handful of professionals were known for having expertise in municipal restructuring. But a recent slew of Chapter 9 filings has yielded many new faces, and Detroit's bankruptcy will only continue that trend.
"Every time a case gets bigger, there are new players," said Richard Levin, a partner at Cravath Swaine & Moore who is representing the Detroit Institute of Arts in the restructuring. Continued...
Chapter 9 filings are rare, with only about 650 cases filed in the 75 years to 2012, mostly involving small municipal entities like sewer districts. But, the last three years have seen filings by the city of Harrisburg, Pennsylvania, Jefferson County, Alabama and the California cities of Stockton and San Bernardino.
And a concurrent lull in corporate bankruptcies has put strain on big restructuring firms like Weil Gotshal, which last month laid off 170 associates and support staff, driving professionals toward municipal work.
"Chapter 9 is not something I started out doing," said George South, a partner at DLA Piper who has become well-versed in the arena, representing creditor groups in the bankruptcies of both Harrisburg and Jefferson County.
PLENTY OF CONSTITUENCIES
In addition to general obligation bonds, Detroit owes nearly $6 billion in revenue bonds and $1.43 billion in pension certificates. Even though the bond insurers are likely to be the ones on the hook, the bondholders themselves will also "lawyer up."
Subsets of the holders may even band together to form committees if they feel a united front would better serve their interests, providing yet another potential path for advisers.
A number of other large law firms, including Brown Rudnick, Orrick Herrington & Sutcliffe and DLA Piper, are involved in the case or looking for ways in, according to people familiar with the matter.
Even if advisers lose out on big-money clients, Detroit's restructuring calls for a slew of projects and transactions that will require their own armies of professionals.
"There's all kinds of consulting opportunities," said Levin, whose client, the Detroit Institute of Arts museum, is at the center of a dispute over whether the city can sell the museum's art collection.
Orr, the emergency manager, has outlined in court papers his plans to create a new water and sewer management authority, transfer Detroit's Belle Isle Park to the state of Michigan, and restructure Coleman A. Young airport, which has not serviced commercial jets in 13 years but which the city must maintain to keep some federal subsidies. Continued...
Each of those moves will require lawyers, consultants and financial advisers to strategize the most cost-efficient execution, said Kenneth Klee, a Chapter 9 expert and bankruptcy lawyer at Klee Tuchin Bogdanoff & Stern.
"Chapter Nines require complete expertise in the area of municipal finance," Klee said. "If you only have bankruptcy expertise, that's not enough."
Eventually, hedge funds and other investment vehicles could find ways into the case, as Orr has stressed the importance of new investment, particularly with respect to the proposed new water and sewer authority, which could finance its operations with new bond issuance.
The case could be a boon for smaller law firms, too.
While large, corporate creditors are apt to tap similarly colossal law firms with whom they have preexisting relationships, smaller or locally-based stakeholders may opt to hire attorneys native to Detroit.
"There are a lot of talented lawyers in Detroit," Levin said. "I would think pensions and unions, for example, might opt for those guys."
Source: http://www.theoaklandpress.com/articles/2013/07/22/news/02ce334d-c7ef-4144-a1b1-6331ee3c0278.txt
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MOSCOW (AP) ? Hundreds of supporters greeted the charismatic Russian opposition leader Alexei Navalny as he returned to Moscow on Saturday after his surprise release from jail and vowed to push forward with his campaign to become mayor of the Russian capital.
Navalny was convicted of theft and sentenced to five years in prison on Thursday in the city of Kirov, in what many considered a politically motivated case aimed at silencing a fierce Kremlin critic.
Less than 24 hours after his conviction for embezzling 16 million rubles ($500,000) worth of timber from a state-owned company in 2009, prosecutors unexpectedly asked for his release, saying that keeping him behind bars during the appeals process would deprive him of his right to run for office.
A day before the conviction, Navalny was registered as a candidate for the Sept. 8 mayoral election.
Hundreds of police blocked Navalny supporters from the platform of the Moscow railway station where his overnight train from Kirov arrived at the capital's Yaroslavsky station.
Through a bullhorn, he addressed backers who were behind the police lines and on nearby station platforms, thanking those who turned out for a large demonstration near the Kremlin protesting his sentence on Thursday, which he credited as key in securing his release.
"I realize that if it wasn't for you I wouldn't be standing here for the next five years. You have destroyed a key privilege that the Kremlin has been trying to keep ? that it is their alleged right to say to any person 'arrest him on the spot'," said Navalny, who claims that the case against him was concocted for political reasons.
Navalny is one of the most visible and charismatic leaders of the opposition to President Vladimir Putin and the governing United Russia party. His description of United Russia as the "party of crooks and thieves" has become a signature phrase of the opposition.
Immediately after his release, Navalny said he hadn't decided whether to continue his mayoral campaign.
But on Saturday he declared "we are going to run in this election and we will win."
His supporters shouted "We are the power."
The surprising about-face involving Navalny highlights an open rift between factions in Putin's government that could be as unsettling for the leadership as any opposition figure, experts say.
Analysts saw Navalny's sudden release as likely reflecting arguments within the Kremlin about how to respond to his popularity. He has earned a wide following among his urban middle-class supporters, even if he has little influence among everyday Russians.
They also saw the move as an attempt to lend legitimacy to the Sept. 8 mayoral vote widely expected to be won by a Kremlin-backed incumbent who resigned last month, forcing a snap election that would make challengers scramble to organize their campaigns.
An opinion survey in early July by the independent Levada polling center showed Navalny attracting only about 8-percent support among likely voters in the mayoral election. It was unclear if the events of the past week would boost his support.
Source: http://news.yahoo.com/russian-opposition-leader-returns-moscow-065739412.html
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This section displays all of the Mohawk Valley news articles published in the past 7 days.
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ONEIDA COUNTY, N.Y. -- A not guilty plea Friday in connection with a double murder in Rome.
Aaron Welch, 26, of Schenectady, has been accused of stabbing the mother of his child, Stephanie Morrison, and another man, Shawn Kessler, to death.
Police said Welch waited outside Morrison's home on Myrtle Street until she returned from work. An argument started and Police say Kessler, who was inside the home, came out to help. That's when police say Welch stabbed them both.
Welch has been charged with one count of murder in the first degree and two counts of second degree murder, as well as weapons possession.
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Bossier City Real Estate Agent Mari Demint Awarded Internet Marketing Specialist Designation
Advanced Marketing Designation Recognizes Deep Understanding of Internet Marketing Strategies for Helping Customers Buy & Sell Homes
Shreveport, LA, July 18, 2013 ?(PR.com)? Advanced Marketing Designation Recognizes Deep Understanding of Internet Marketing Strategies for Helping Customers Buy & Sell Homes
Mari Demint, a leading real estate professional with Keller Williams Realty NWLA in Shreveport, Louisiana, has been awarded the Internet Marketing Specialist designation for her proficiency in using Internet marketing strategies to help her customers market their properties throughout the Web.
Demint is now completely trained in marketing real estate across the Internet, including on all the major search engines, social media channels, CraigsList and more ? with proven strategies that drive the maximum traffic and inquiry volume to help homes get sold fast and for the highest price possible.
?The most important attribute in choosing a real estate agent today is mastery of the Web as a marketing tool for your home or property,? said Ben Kinney, founder of the Internet Marketing Specialist Designation. ?Mari has mastered the Web marketing best practices I actively use in my practice, and has differentiated herself among other real estate professionals in the market with these skills.?
For more information about Mari Demint and Keller Williams Realty NWLA, please visit http://www.sellingbossierhomes.com.
About Mari Demint
Mari Demint is a native of Shreveport/Bossier area. She has been married for over 22 years, has two children and two grandchildren. Mari started her career in Real Estate in 1998 and helped families for three years. After going back to school and achieving a 2nd degree, she returned to Real Estate in the Shreveport/Bossier City area.
Mari joined Keller Williams Realty in March, 2013 and has intently acquired education to enhance her career. Her two strengths, Marketing and negotiating, are qualities that make her one of the best in the real estate industry. Using her marketing background, Mari has combined her education and acquired internet marketing skills to assure client?s homes are seen in every possible avenue. Her negotiating skills help her clients receive the highest price for their home the market allows in the quickest amount of time and she arms sellers with the knowledge to make that a reality.
Mari Demint, Your Leading Edge Realtor | Louisiana Residential Homes | Keller Williams Realty NWLA
708 N Ashley Ridge Loop #200, Shreveport, LA 71106
Off 318-213-1555, Cell 318-678-3136
http://www.SellingBossierHomes.com
Servicing Bossier City, Haughton, Benton and Surrounding areas
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<strong>Feb. 19, 2012</strong> -- Trayvon Martin, 17, and Tracy, his father, travel from Miami Gardens to Sanford, Fla., to visit the elder Martin's fiancee in her townhome at The Retreat at Twin Lakes. <em>Photo courtesy of <a href="http://www.globalgrind.com" target="_blank">globalgrind.com</a></em>
<strong>Feb. 26, 2012</strong> -- Trayvon Martin is walking to the home of his father's fiancee after purchasing items from a 7-Eleven store in Sanford. George Zimmerman, a neighborhood watch volunteer, spots Martin at approximately 7 p.m. and calls police. "We've had some break-ins in my neighborhood, and there's a real suspicious guy," Zimmerman tells police.
<strong>Feb. 26, 2012</strong> -- Roughly seven minutes after Zimmerman's call to police, authorities receive a 911 call from an individual reporting a fight. During the call, the dispatcher hears a gunshot in the background and sends police units to the location. Responding officers discover that Martin has been shot in the chest. The teen is unresponsive and pronounced dead at the scene. Police find no identification on Martin and label him a John Doe.
<strong>Feb. 26, 2012</strong> -- Questioned by police, Zimmerman informs them that Martin attacked him and he fired his gun in self-defense. Authorities confiscate Zimmerman's 9 mm semi-automatic pistol and take him to the Sanford Police Department for further questioning.
<strong>Feb. 27, 2012</strong> -- Following a lengthy interview, George Zimmerman is released from the police station at approximately 1 a.m. Hours later, Tracy Martin contacts police to report his son missing. Investigators soon connect the dots and inform the elder Martin of his son's death. After receiving treatment from a family doctor, Zimmerman meets with investigators and reenacts the events of the shooting at the crime scene.
<strong>March 8, 2012</strong> -- Tracy Martin holds a press conference, during which he criticizes the investigation into his son's slaying. "We feel justice hasn't been served," Martin tells reporters.
<strong>March 9, 2012</strong> -- Martin family attorney Benjamin Crump tells the Miami Herald he is filing a lawsuit for the release of public records in the case.
<strong>March 10, 2012</strong> -- Members of the New Black Panther Party, contending there has been a "miscarriage of justice," rally outside the Sanford Police Department.
<strong>March 12, 2012</strong> -- Sanford Police Chief Bill Lee holds a press conference, at which he claims that investigators were unable to arrest Zimmerman because he was protected by Florida's "Stand Your Ground" law, which allows residents to shoot someone if they reasonably believe they are being threatened. "There is no evidence to dispute Zimmerman's assertion that he shot Martin out of self-defense," Lee says. In response, Martin's parents, Tracy Martin and Sybrina Fulton, post a petition on the Change.org website calling for State Attorney Angela Corey to prosecute Zimmerman. The petition quickly garners support from multiple celebrities and receives nearly 900,000 signatures the first week.
<strong>March 13, 2012</strong> -- In a letter to U.S. Attorney General Eric Holder, the NAACP expresses doubt in the Sanford Police Department's ability to appropriately handle the investigation, asking the Department of Justice to review the case. "The NAACP has no confidence that, absent federal oversight, the Sanford Police Department will devote the necessary degree of care to its investigation," the letter says. Sanford police announce the completion of their investigation and turn the case over to the State Attorney's Office for Brevard and Seminole Counties. "Trayvon Martin and his family, interested persons, and the public-at-large are entitled to no less than a thorough, deliberate and just review of the information provided, along with any other evidence that may or may not be developed in the course of the review process," State Attorney Norm Wolfinger's office says in a statement.
<strong>March 14, 2012</strong> -- Mary Cutcher, a woman listed in police reports as a witness who heard Martin's shooting, <a href="http://www.wftv.com/news/news/witness-sanford-police-blew-us-teen-slaying/nLSqk/" target="_blank">tells WFTV.com that police took only a short statement from her</a> following the shooting. "[The police] blew us off, and I called back again and I said, 'I know this was not self-defense. There was no punching, no hitting going on at the time, no wrestling,'" says Cutcher.
<strong>March 15, 2012</strong> -- Sanford police issue a statement calling Mary Cutcher's TV interviews "inconsistent" with her sworn testimony. Meanwhile, Zimmerman's father, Robert, tells the Orlando Sentinel that his son has been unfairly portrayed as a racist.
<strong>March 16, 2012</strong> -- Sanford police release eight 911 recordings in the case. One of the recordings includes a voice in the background screaming, "Help, help!" The screams are followed by the sound of a gunshot.
<strong>March 19, 2012</strong> -- The Justice Department and the FBI announce they have opened an investigation into the shooting.
<strong>March 20, 2012</strong> -- State Attorney Norm Wolfinger announces that a Seminole County, Fla., grand jury will review the circumstances of Martin's death.
<strong>March 21, 2012</strong> -- The Sanford City Commission votes "no confidence" in Sanford Police Chief Bill Lee and calls for his resignation.
<strong>March 22, 2012</strong> -- Sanford Police Chief Bill Lee holds a press conference and announces he is temporarily stepping down as police chief because his presence is a "distraction." State Attorney Norm Wolfinger recuses himself from the case and Florida Gov. Rick Scott announces that another state attorney, Jacksonville-based Angela Corey, will be replacing Wolfinger as special prosecutor in the investigation. Meanwhile, Rev. Al Sharpton, Martin Luther King III and other civil rights leaders and politicians hold a justice rally at Sanford's Fort Mellon Park. They demand an arrest in Martin's shooting. An estimated 10,000 people attend the event.
<strong>March 23, 2012</strong> -- President Barack Obama tells reporters that the nation needs to do some "soul-searching to figure out how something like this happens." He adds, "If I had a son, he'd look like Trayvon."
<strong>March 24, 2012</strong> -- Members of the New Black Panther Party offer a $10,000 reward for the "capture" of Zimmerman.
<strong>March 25, 2012</strong> -- Rev. Jesse Jackson speaks in Eatonville and encourages revisions to Florida's "Stand Your Ground" law. "If it's a moment, we go home. If it's a movement, we go to war," says Jackson.
<strong>March 26, 2012</strong> -- Police release new details of the investigation, saying Zimmerman told them Martin punched him and slammed his head into the sidewalk several times. Acting Police Chief Darren Scott takes over as chief of the Sanford Police Department. Thousands of people gather in Sanford to mark one month since Martin was killed.
<strong>March 29, 2012</strong> -- Zimmerman's brother, Robert Zimmerman Jr., tells CNN that medical records will prove his brother was attacked and his nose was broken.
<strong>April 3, 2012</strong> -- Florida State Sen. Chris Smith (D-Fort Lauderdale) announces the formation of a task force to review the state's "Stand Your Ground" law.
<strong>April 8, 2012</strong> -- George Zimmerman launches the website "The Real George Zimmerman" to raise money for his defense.
<strong>April 9, 2012</strong> -- State Attorney Angela Corey announces her decision not to use a grand jury in the Martin investigation. The move eliminates the possibility of a first-degree murder charge.
<strong>April 10, 2012</strong> -- Zimmerman's attorneys, Hal Uhrig (right) and Craig Sonner, announce that they will no longer be representing him.
<strong>April 11, 2012</strong> - State Attorney Angela Corey announces the charging of George Zimmerman with second-degree murder. Zimmerman turns himself in to police and is booked into the Seminole County Jail. Mark O'Mara announces his role as Zimmerman's new attorney.
<strong>April 23, 2012</strong> -- George Zimmerman's new lawyer, Mark O'Mara, enters a not-guilty plea on his client's behalf. Zimmerman is released from jail on a $150,000 bond. Per the conditions of his release, Zimmerman is required to wear a GPS monitoring device.
<strong>April 24, 2012</strong> -- George Zimmerman shuts down his website. According to his attorney, the site raised $200,000.
<strong>April 27, 2012</strong> -- Mark O'Mara launches the website GZLegalCase.com as the official site for Zimmerman's legal case.
<strong>May 8, 2012</strong> -- At Zimmerman's arraignment, Seminole County Circuit Judge Kenneth Lester Jr. accepts his not-guilty plea.
<strong>May 17, 2012</strong> -- Prosecutors release police reports, witness statements, surveillance videos and other evidence in the case.
<strong>June 1, 2012</strong> -- Judge Lester revokes Zimmerman's bond, stating that his ruling is based on concerns that Zimmerman and his wife did not fully disclose their finances at the bond hearing.
<strong>June 3, 2012</strong> -- Zimmerman is returned to jail.
<strong>June 12, 2012</strong> -- George Zimmerman's wife, Shellie, is arrested on one count of perjury.
<strong>June 20, 2012</strong> -- The Sanford city manager fires Bill Lee from the police force.
<strong>June 21, 2012</strong> -- George Zimmerman's legal team releases discovery evidence on their client's website.
<strong>June 29, 2012</strong> -- Zimmerman's second bond hearing is held. The judge does not immediately issue a ruling.
<strong>July 5, 2012</strong> -- Judge Lester grants Zimmerman a higher bond of $1 million.
<strong>July 6, 2012</strong> -- Zimmerman is again released from jail.
<strong>July 19, 2012</strong> -- George Zimmerman relaunches his personal website.
<strong>July 27, 2012</strong> -- George Zimmerman's wife pleads not guilty to perjury.
<strong>Aug. 29, 2012</strong> -- An appeals court grants a request by George Zimmerman's defense team to dismiss Judge Lester from the case.
<strong>Aug. 30, 2012</strong> -- Circuit Judge Debra S. Nelson is assigned the case.
<strong>Oct. 19, 2012</strong> -- Judge Nelson grants a defense motion requesting access to Trayvon Martin's school records and social media posts. The state is also granted access to Zimmerman's medical records.
<strong>Nov. 14, 2012</strong> -- Gov. Scott's "Stand Your Ground" task force concludes its final meeting and recommends no sweeping changes to the law.
<strong>Nov. 20, 2012</strong> -- Former Casey Anthony attorney Jose Baez announces that he is representing Sanford police Detective Chris Serino, the lead investigator in the shooting.
<strong>Dec. 3, 2012</strong> -- A new photo is released showing George Zimmerman with a bloody, broken nose on the night of the shooting.
<strong>Feb. 5, 2013</strong> -- On this day, Trayvon Martin would have turned 18.
<strong>Feb. 26, 2013</strong> -- Martin's parents hold a rally in his memory to mark the one-year anniversary of his death.
<strong>March 26, 2013</strong> -- Zimmerman's defense team releases its witness list of 134 people, including Sanford police officers and 56 unnamed witnesses.
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