In The News

• September 12, 2012
  'Calif. Pension Overhaul Won't Save Cities from Ch. 9'
  Law360
  Karol K. Denniston
  This Law360 article quotes Schiff Hardin partner Karol Denniston regarding recent California reforms signed into law aimed to reduce tens of billions of dollars in public pension costs. The measure is focused primarily on changes for public employees who are hired starting January 1; therefore, many cities already struggling with unfunded pension liabilities and other creditors will still need to negotiate with creditors or consider a Chapter 9 bankruptcy filing. Since many municipalities cannot afford their pension payments, Denniston believes that many will turn to A.B. 506, a bill she helped draft which requires California municipalities in financial distress to negotiate with creditors. The city of Stockton, which went through the A.B. 506 process before filing for Chapter 9 in June, is setting the stage for a legal battle over how the California Public Employees Retirement System (CalPERS) claims are going to be treated, says Denniston.
• August 23, 2012
  'Creditors of Stockton Fight Over Pension Funding While in Bankruptcy'
  The New York Times
  Karol K. Denniston
  In an article published by The New York Times, Schiff Hardin partner Karol Denniston comments on the complex financial and legal implications of the Chapter 9 bankruptcy filed by the city of Stockton, Calif., in June 2012. If the city fails to make payments on its bonds, then creditors, including two bond insurers, will have to make the payments. Ms. Denniston, who helped draft a law stating that California municipalities must enter mediation with creditors prior to filing for bankruptcy protection, notes that other financially strained communities may follow Stockton's example if the case shows that public pensions can in fact be reduced in federal bankruptcy court.
• August 19, 2012
  'Calpers Defends Pension Benefits While Risking Losses'
  Various news outlets
  Karol K. Denniston
  A Bloomberg  story picked up by several news outlets details the stance of the California Public Employee's Retirement System (Calpers) in the face of municipal bankruptcies in Stockton and San Bernardino, Calif. In the article, Schiff Hardin partner and bankruptcy lawyer Karol Denniston notes that the briefs filed by insurers argue that Calpers should be treated like any other creditor, but that Calpers will argue that they are a different kind of creditor. The outcome of the Stockton bankruptcy case will be precedential in determining the future of municipal bankruptcy cases, says Denniston.
• April 12, 2012
  'Cuomo Acts to Advance Health Law in New York'
  The New York Times
  Peter J. Kiernan
  Peter Kiernan, of counsel in Schiff Hardin's Public Law and Public Finance Groups, is quoted in this article about New York Governor Andrew Cuomo's establishment of a health insurance exchange in his state. Mr. Kiernan, chief counsel to the previous governor, comments that Governor Cuomo is within his legal rights to bypass the legislature in directing the Department of Health to establish the exchange.
• December 22, 2011
  'The Bond Buyer's Cultural Forum'
  The Bond Buyer
  Peter J. Kiernan
  Schiff Hardin Public Finance and Public Law of counsel Peter Kiernan was quoted in this report on the Second 501(c)3 Financing SuperConference in New York earlier this year. The article was an edited transcript of a roundtable conversation among the financial professionals leading some of the nation's most interesting cultural institutions, and market professionals who help them access capital. Schiff Hardin LLP is nationally recognized bond counsel, well known for our experience, talent and creativity as bond counsel and counsel in other capacities in public finance transactions, as well as public law.
• July 29, 2009
  'Schiff Hardin Gains Bond Group'
  Fulton County Daily Report
  Lewis C. Horne Jr., Sandra Z. Zayac
  This front-page story announces the arrival at Schiff Hardin's Atlanta office of three attorneys from Troutman Sanders LLP — Lewis C. Horne Jr., Han C. Choi and Sandra Z. Zayac. Michael K. Wolensky, leader of the Atlanta office, explains the value of augmenting the firm's public finance capability in the region.