Chapter 9

Atlantic City, N.J., is in the midst of a financial crisis that has been in the making for years. Increased competition and a host of unfortunate spending and hiring decisions have led to a state of affairs that currently features the nation’s highest home foreclosure rate, junk bond credit status an alarmingly large budget deficit. More recently, public officials have fought whether schools should be funded at the expense of shutting down city government, or vice versa, as if either would be an acceptable outcome.

KaloBios Pharmaceuticals Inc., a company that recently fired Martin Shkreli as chief executive, filed for chapter 11 protection. The Wall Street Journal has the Daily Bankruptcy Review article here.

A federal judge will hear protests on Wednesday from bondholders who say the city of San Bernardino, Calif., shouldn’t leave bankruptcy protection without making a higher repayment offer on roughly $51 million worth of bonds.

GT Advanced Technologies Inc., a former sapphire supplier to Apple Inc., reached a new accord on a $439 million with the iPhone maker.

The Kentucky town of Hillview, a southern suburb of Louisville, gave one reason why it filed for bankruptcy: a multimillion-dollar land dispute with a truck driver training school that has been simmering for a decade.

Trucking school officials filed a lawsuit to force a tax increase on the city of roughly 9,000 residents—a request under Kentucky law that hasn’t been made since the 1940s. The city’s $15 million legal judgment was growing by $3,759.54 a day.