Municipal Workout

Lewis & Munday has helped many municipalities with workouts. If you need Act 4 (State of Michigan) workout assistance, Lewis & Munday can provide the experienced legal representation you need.

The Firm Trusted by Municipalities and other Political Subdivisions

As a nationally respected law firm, Lewis & Munday has been trusted by municipalities and other political subdivisions to handle complex financial and legal matters. Throughout the Firm's 40-plus years of service, Lewis & Munday has represented the City of Detroit, Detroit Public Schools, Wayne County (Michigan), The City of Detroit Downtown Development Authority, The Economic Development Corporation of the City of Detroit and the Detroit Building Authority.

The Firm has also been trusted to represent the State of Connecticut, agencies or authorities of the State of Michigan, the City of Flint, Michigan, the City of Richmond, Virginia, Oakland University, The Howard University, University of Virginia and the University of Michigan.

About Chapter 9: Municipal Bankruptcy

Chapter 9 relief is available for qualifying municipalities, including cities, towns, counties and various government entities. Eligibility requirements for municipal bankruptcy are set out in Chapter 9 of the U.S. Bankruptcy Code. Some of the eligibility requirements for Chapter 9 relief, as stated in 11 U.S.C. Section 109(c), include:

• The applicant must be a municipality (Section 109(40) defines municipality)
• The municipality must be insolvent
• The municipality must desire to effect a plan to adjust its debts

Section 109(c) also requires municipalities to complete the following:

• Gain the approval of certain creditors
• Demonstrate that it has negotiated in good faith to seek such approval
• Demonstrate that it is unable to negotiate with creditors; or
• Demonstrate that the municipality believes the creditor may seek a transfer under Section 547 of Title 11.

About Act 4 of 2011 - Michigan's "Local Government and School District Fiscal Accountability Act"

• Act 4 was signed into law on March 16, 2011 and replaces the "Local Government Fiscal Responsibility Act" of 1990, P.A. 72 of 1990.
• Act 4, among other things,
  • Expands triggers that lead to state review of local governments
  • Creates "review teams", which can enter into consent agreements with local governments to address financial stress without appointing an emergency manager
  • Provides for the mandatory declaration of receivership and appointment of an emergency manager, if the Governor determines that a financial emergency exists
  • Expands powers of emergency managers, including the power to reject, modify or terminate existing contracts or collective bargaining agreements, to disincorporate or dissolve a municipal government with approval of the Governor or to recommend consolidation into another municipal government
  • Authorizes the emergency manager to, among other things, recommend that the local government proceed under Chapter 9 of the Federal Bankruptcy Code.

Corporate Transactions: Local, National, International

Lewis & Munday's Corporate Services Practice Group is pleased to represent clients across the country in a wide range of corporate transactions and corporate finance matters. The Firm represents profit and nonprofit organizations, including corporations, partnerships and limited liability companies.

Experience, detail and diligence are the hallmarks of the Firm's Corporate Services Practice Group. Whether it is facilitating the acquisition of intellectual property assets, restructuring real estate loans, or transferring equity interests, Lewis & Munday's attorneys have the breadth and depth of experience to handle the most sophisticated transactions.

Lewis & Munday attorneys assist corporate entities with, among other things: Securities offerings, Corporate finance, General corporate and organizational matters, Corporate acquisitions and divestitures, Private equity, Joint ventures and Commercial transactions.