Municipalities and Chapter 9

HBD probably has more experience relating to municipal bankruptcy under chapter 9 of the Bankruptcy Code than any other firm in the country. 

HBD’s chapter 9 experience is highlighted most prominently in through its representation of Orange County, California, as both lead reorganization counsel in connection with the largest municipal debt adjustment case in U.S. history, and lead litigation counsel in lawsuits filed against Merrill Lynch, other broker-dealers, structured note issuers, and accounting and legal professionals retained by the County prior to the County’s financial crisis.  HBD’s efforts resulted in the payment or restructuring of approximately $10 billion of indebtedness under a plan so successful that the County’s credit rating ascended from D (“default”) to AA (an investment grade rating) within 18 months following the implementation of the plan.  HBD’s efforts also enabled the County to recover more than $871 million in litigation cases involving matters of securities, bankruptcy, commercial fraud, municipal government, and professional malpractice law. 

HBD also acted as lead reorganization counsel for the City of Desert Hot Springs, which was the first California city to file a chapter 9 bankruptcy case.  That case culminated in the confirmation of a plan of adjustment that provided for the repayment in full of all creditor claims.