Looking For Boom In Busts

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It’s a sign of the times: Encino bankruptcy law firm Greenberg & Bass LLP has launched a website to help cities in bankruptcy and the parties that hold their IOUs.

Broke-Cities.com is billed as a resource for cities in fiscal trouble and other parties impacted by municipal bankruptcy filings, including creditors, contractors, vendors, bond holders, pensioners and unions.

“There are all sorts of resource websites for corporate and personal bankruptcies, but nothing comprehensive has ever been pulled together for municipal bankruptcies,” said Douglas Neistat, a Greenberg & Bass partner who is spearheading the effort.

Three California cities – Stockton, Mammoth Lakes and San Bernardino – filed for Chapter 9 bankruptcy protection in the last 12 months. Neistat said he expects more filings to come.

Neistat acknowledged one goal of the site is to draw prospective clients for the law firm, which has represented claimants seeking to recover debts from special districts that filed for Chapter 9. But what he’d really like to do is offer cities advice on how to avoid filing for bankruptcy.

“There’s a tremendous need to negotiate amongst various parties and a need for cities to find assets to monetize,” Neistat said. “We see ourselves as being a resource.”

– Howard Fine