Bankruptcy Expert at Pepper Hamilton LLP Available Now To Discuss Issues Related to States Filing for Bankruptcy And How Bankruptcy Code Would Need to be Amended to Permit Such Filings

PHILADELPHIA--(BUSINESS WIRE)--Pepper Hamilton LLP:

WHO:	Leon Barson, Partner with the Corporate Restructuring and Bankruptcy Practice Group at law firm Pepper Hamilton, LLP
WHAT:	Mr. Barson, a legal expert on bankruptcy, is available to discuss issues related to states filing for bankruptcy and what barriers might prevent that
WHY:	With many states struggling to remain solvent, the debate has turned to whether bankruptcy – which may allow states to renegotiate with their creditors, including unions and state employees – might make sense. Former House Speaker Newt Gingrich just recently predicted that legislation would be introduced soon to permit states to declare bankruptcy. Currently, the federal Bankruptcy Code does not permit states to file for bankruptcy. Twenty-six states, however, have some form of authorization for municipalities to file for Chapter 9 relief.

Mr. Barson, an expert in bankruptcy and partner with the Pepper Hamilton Corporate Restructuring and Bankruptcy Practice Group, is available immediately to explain what the Bankruptcy Code does and does not permit regarding this important issue, how likely Mr. Gingrich’s proposal is to gain momentum, and what other steps financially strapped states might take.

Mr. Barson can be reached for immediate comment at: [phone].