Municipalities today face significant challenges reconciling increased public demands for services with declining revenue and tax base, escalating labor and pension costs, and limited access to capital. With mounting financial pressures, some municipalities have already navigated, with differing results, the challenging process of comprehensive financial restructuring – both in and out of court. Other municipalities, and their creditor constituencies, are at or close to a point where such restructurings are inevitable. If the list of recent municipality recovery efforts have taught us anything, they reveal that some approaches work better than others – and produce markedly different results.
Our lawyers have unique experience in formulating and executing the strategies that work. Our proven techniques are premised on building credibility and demonstrating transparency with all constituents and a commitment to ensuring that the ultimate recovery solution is not only fair and equitable to all stakeholders but also results in a firmly rooted foundation of financial discipline and responsible economic stewardship.
King & Spalding has the expertise and resources to take on any troubled municipality assignment. Our experience allows us to view these multifaceted problems from the perspectives of many different constituents and stakeholders – including sophisticated financial creditors, political bodies, service providers, and the municipal workforce and citizenry. Hand in hand with these perspectives and insights, we also bring to bear second-to-none expertise in each area of the law upon which successful strategies much draw, including complex financial transactions, restructurings and related litigation, public finance, ERISA/labor employment, public policy, tax, and government investigations.