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CITY OF HARTFORD STATEMENT ON CALL WITH BONDHOLDERS

CITY OF HARTFORD STATEMENT ON CALL WITH BONDHOLDERS

HARTFORD, CONN (September 25, 2017) – The City of Hartford announced today that it conducted a scheduled call with bondholders at 10 AM on September 25, 2017.  The call was open to all bondholders and bond insurers who hold or insure general obligation debt of the City of Hartford.  The purpose of the call was for the City to provide an overview of its current situation to the holders as a first step in what it hopes will be a constructive dialogue about restructuring alternatives.  The City also encouraged holders to direct concerns or questions directly to its financial and legal advisors, Rothschild & Co. and Greenberg Traurig, or to submit them to This email address is being protected from spambots. You need JavaScript enabled to view it..">This email address is being protected from spambots. You need JavaScript enabled to view it..

Because the call was open to all holders and insurers without confidentiality restriction, the City limited the call to public information and did not take questions.  “Today’s call was an opportunity to speak directly to a substantial group of our bondholders to provide our perspectives on Hartford’s current situation,” said Treasurer Adam Cloud.  “Although we were limited in what we could say, we viewed this call as a necessary first step in our discussions with bondholders regarding the future of Hartford.”

Hartford had previously met with certain insurers of its bonds to discuss Hartford’s financial situation and possible structural solutions suggested by the insurers.  Mayor Luke Bronin addressed those discussions and recent public statements by Assured Guaranty directly on the call saying, “I appreciate Assured’s willingness to have constructive discussions, and our team is prepared to engage with all stakeholders who are interested in constructive discussions.  That said, as I have said many times before – and without addressing the specifics of our discussions with Assured – we are interested in long-term solutions that leave the City with a path to sustained solvency and strength, without leaving future administrations to deal with the same kind of challenges.”

The City continues to evaluate all alternatives for long-term restructuring and is focused on solutions for Hartford that provide a path to sustainability and growth.  Mayor Bronin summed up his views of a debt restructuring on the call by saying that, “We need all stakeholders to recognize that this is a structural problem that requires a structural fix, and that this administration is not interested in pushing off this challenge for another Mayor or another generation to fix.”  He also addressed the role that bond restructuring could play in helping to avoid a Chapter 9 filing, stating that, “The restructuring of debt could represent one important part of a multi-part plan for achieving sustainability outside of Chapter 9, but that path will only be available if all the other elements of a sustainable solution are in place, including a substantial and sustained increase in revenue from the State of Connecticut, as well as the participation of other stakeholders.”

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