Many municipalities and municipal related entities, such as county hospitals, rely on bond issuances to raise capital for their continued operations. Whether it’s a General Obligation Bond or Revenue Bond, the underwriting process is essentially the same. As a municipality or related entity, you rely on the Municipal Advisory Firms and Underwriting Firms to properly guide you on any bond issuance. Often times these very same Advisors and Underwriters are so keen on collecting their fees that they will, knowingly or unknowingly, lead these municipalities astray. The results of which may be debt coverage misrepresentations (as what happened with the municipalities in Puerto Rico) or improper structuring of the bond issuance itself (as what happened with Auction Rate Securities and undue Maximum Auction Rates).
The Law Firm of Shepherd Smith Edwards & Kantas, LLP has experience working with and representing municipalities and related entities. If you feel you have been wronged by an Advisor or Underwriter, feel free to contact us