Welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Tuesday, May 5. In today's briefing, a look at a hidden strain on municipal finances, Saks Global's CEO is plotting a path out of bankruptcy, and a cannabis business faces a challenge to its request for U.S. bankruptcy protection.

And now on to today's news...

A hidden liability for municipalities. U.S. cities are facing huge liabilities that remain invisible on their books: dilapidated roads, bridges and buildings. A new study aims to put a dollar figure on the total wear and tear on the country’s urban infrastructure, and arrives at $1.03 trillion. That is not necessarily what it would cost to bring the infrastructure up to date, but it offers a snapshot of the magnitude of the repairs local governments will need to address in coming years. The costs are hypothetical for now, but could someday hit cities’ bottom lines.

Saks CEO plots comeback. Geoffroy van Raemdonck took the helm of the troubled company, which owns Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, in January after it sought court protection from creditors. As CEO of Saks Global, van Raemdonck has been repairing relationships with vendors, closing stores, reducing corporate staff and cutting ties with some partners, including Amazon.com. Now he says the company is on the road to recovery.

Cannabis bank lender objects to foreign bankruptcy recognition. A bank lender to The Cannabist Company objected to the company's request for U.S. recognition of its Canadian restructuring plan, saying that U.S. courts can't provide such relief when the pot business remains illegal under U.S. law.

East West Bank said in court papers Friday that allowing Cannabist to obtain relief under chapter 15, the section of the U.S. bankruptcy code covering foreign entities, would violate federal policy on controlled substances.

East West Bank is owed some $40 million under mortgages with two subsidiaries of Cannabist, according to the bank's filing with the U.S. Bankruptcy Court in Wilmington, Del. A judge is scheduled to consider next week whether to recognize the company's Canadian bankruptcy proceeding in the U.S. — Andrew Scurria

Federal Judge strips litigation shield from Genesis Healthcare’s investors and officers. A federal judge vacated the bankruptcy shield extended to investors and officers of Genesis Healthcare, a California-based skilled nursing operator that has been under chapter 11 since July.

Judge Jane Boyle of the U.S. District Court in Dallas said in her ruling filed Friday that a bankruptcy judge made an error when she extended the litigation stay to Genesis’s non-bankrupt investors and officers without a formal adversary proceeding, a clear precedent established by the Fifth Circuit Court of Appeals.

Boyle remanded the case back to the bankruptcy court for further proceedings. The order came down in response to an appeal by three groups of tort claimants against Genesis, alleging healthcare negligence, personal injury, and wrongful death.

Those claimants sought to pursue lawsuits not only against Genesis but also against its investors, officers, and individual healthcare professionals.  — Akiko Matsuda

Share your tips, suggestions and feedback with the WSJ Pro Bankruptcy team: Alexander Gladstone; Jodi Xu Klein; Akiko Matsuda; Alicia McElhaney; Andrew Scurria; Becky Yerak. 

Follow us on X: @gladstonea; @jodixu; @AskAkiko; @AliciaMcElhaney; @AndrewScurria; @beckyyerak.