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The Deal: Restructuring Insider: Reexamining State BankruptcyApril 27, 2020
O’Melveny restructuring chair John Rapisardi was quoted in this The Deal article about the coronavirus pandemic’s impact on the economy and whether or not states should be allowed to file for bankruptcy protection. “It’s clear that state governments and municipalities — further strained from unprecedented stresses on the social safety net — will need to restructure their own debt, especially large states with high annual deficits and substantial taxpayer burdens,” said Rapisardi. He added states were unlikely to file for bankruptcy, “because of political reasons.” Rapisardi continued, “Even if such a measure was passed, it most certainly would be subject to constitutional challenges as we have seen in Puerto Rico.”
The Deal subscribers can read the full article here.