Ronald Bernardi was featured in a BDA and Nixon Peabody Webinar on Municipal Bankruptcy Wednesday, May 11th. Over 40 BDA member-firm representatives participated in the webinar, which was the fourth webinar training series focused on banker due diligence, which is exclusively for BDA member firms.

The Powerpoint presentation with audio can be viewed here.

The webinar featured the commentary of:

  • Ronald P. Bernardi, President and CEO, Bernardi Securities, Inc.
  • Elizabeth Columbo, Partner, Nixon Peabody LLP
  • Robert Christmas, Partner, Nixon Peabody LLP
  • Daniel Deaton, Partner, Nixon Peabody LLP

The webinar addressed the increasingly important topic of due diligence and disclosure of municipal bankruptcy risks. Discussion points focused on the following topics:

  • A background discussion on why municipal bankruptcy is a due diligence and disclosure issue
    • What is uniquely challenging about municipal bankruptcy to bondholders?
    • Why Chapter 9 provides additional flexibility in the U.S. Bankruptcy Code?
  • Why should you be concerned with municipal bankruptcy?
    • A discussion on how the emergence of municipal bankruptcies has changed credit analysis and why it should be performed on bonds.
  • What have we learned about how Chapter 9 treats bondholders?
    • With bonds secured by lease payments?
    • With bonds secured by a pledge that constitutes “special revenues”?
    • How are the rights of creditors administered under Chapter 9?
    • What are the rights of municipalities under Chapter 9?
  • What should a banker do on transactions that involve:
    • No pledge (unsecured credit)?
    • A pledge or lien?
    • Bonds backed by lease payments?