Since June 6, when Bridgeport, Conn., became the largest city ever to file a bankruptcy petition Chapter 9 has received nationwide publicity. For the municipal bond market, bankruptcy has become a household word. Still, few understand Chapter 9's history and functioning, or what the Bridgeport case will mean for future filings. Here is an effort to shed some light on the subject. Most of the information is based on conversations with James E. Spiotto, a partner in the Chicago law firm of Chapman & Cutler; Jeffrey Cohen, a lawyer with the Denver-basedfirm Cohen & Associates; and other attorneys.
* What is Chapter 9?