Practice

Municipal and Public Entity Restructuring

Counsel for Municipal and Public Sector Restructurings

Sheppard advises municipalities, public entities, bondholders and trustees in complex restructurings and insolvency matters nationwide. 

With unmatched public-sector restructuring experience, our team delivers pragmatic solutions to protect financial stability and essential services.

Trusted Advisors in Chapter 9 Bankruptcies and Beyond

Sheppard’s Municipal and Public Entity Restructuring team guides cities, counties, special districts and public agencies through complex, high-profile financial restructurings across the U.S.

We balance financial imperatives with public service obligations, delivering strategic solutions that preserve stability and essential services.  

Our lawyers have decades of experience in: 

  • Chapter 9 bankruptcies 
  • Out-of-court workouts 
  • State law restructuring alternatives 
  • Negotiating forbearance and restructuring agreements
  • Litigating constitutional and statutory issues in bankruptcy court
  • Designing governance reforms and operational restructuring strategies 

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Experience

Representative Matters
  • Orange County, California –served as co-counsel to the Official Pool Participants Committee and counsel to the Schools Subcommittee in this milestone Chapter 9 case. We did extensive work on issues relating to Chapter 9, tax, litigation, municipal finance, government contracts, insurance and legislation. Ultimately achieved close to a 100% recovery for our constituents on billions of dollars of claims.
  • Detroit, Michigan –represented the lead creditor in this case, the largest Chapter 9 proceeding ever filed. They were instrumental in litigating first impression issues such as the priority of General Obligation Bonds and Revenue Bonds.
  • Jefferson County, Alabama –represented the largest bond insurer in this case and were instrumental in crafting a first of its kind settlement and consensual plan of adjustment that was funded by the public finance market.
  • Vallejo, Stockton and San Bernardino, California –represented bond insurers in each of these Chapter 9 cases and were instrumental in litigating issues of first impressions and crafting consensual plans.
  • Our lawyers are active in numerous matters involving the restructuring of debt issued by the Commonwealth of Puerto Rico, including:
    • COFINA –represented a group of investment funds in negotiating and consummating a historic restructuring of over $17 billion of obligations issued by this instrumentality of Puerto Rico.
    • General Obligation and Other Debt –currently representing a group of investment funds in the possible restructuring of other Puerto Rico debt.
    • City of San Juan –represented the capital city of Puerto Rico in successfully contesting a restructuring proposal issued by the Government Development Bank.
  • Represented major creditors in the out-of-court restructuring of debt issued by Hartford, Connecticut, Atlantic City, New Jersey, Harrisburg and Scranton, Pennsylvania and Woonsocket, Rhode Island.