By EMILY GLAZER Wall Street Journal Blog

Q: How can a mediator’s role differ between corporate and municipal bankruptcies?
A: Some Chapter 11, or corporate bankruptcy, cases are sometimes two-party mediations whereas municipal Chapter 9 cases have so far been multi-party mediations, which complicates the outcome with the diversity of perspectives, interests and concerns, said Ralph Mabey, a retired U.S. bankruptcy judge who has served as a mediator in connection with the Stockton, Calif., Chapter 9 bankruptcy and Chapter 11 cases including Lehman Brothers.

“The attempt to harmonize all those goals makes Chapter 9 mediation a real challenge,” he said.
Politics can also seep into the Chapter 9 process, said Mr. Newsome. A state governor, for instance, may want to help a troubled municipality, but doing so could anger 10 other cities waiting in line for help.

Read more from the Wall Street Journal here.