detroit bankruptcy

The City of Detroit’s groundbreaking bankruptcy proceeding enters what may be its final phase this week. The court will conduct hearings over the next month or so to decide whether to approve the plan for exiting bankruptcy presented by the emergency appointed by the Michigan Governor under the...
09/03/2014
Blog
The water war in Detroit has taken a new turn. The emergency manager (the virtual city dictator appointed by the governor) shut off thousands of customers of the Detroit Water and Sewerage Department for non-payment. Some were undoubtedly taking advantage of the chaos caused by the State takeover...
07/29/2014
Blog
Once again, Detroit’s tragic circumstances provide a window on the state houses and governors that were captured by right wing ideologues in the 2010 elections and are now at odds with urban (read “racial minority controlled”) governments. The state-appointed Detroit Emergency Manager has commenced...
07/16/2014
Blog
In recent days the Detroit Water and Sewerage Department, often working through independent contractors, has started cutting off service to up to 120,000 delinquent citizens, while giving a pass to major corporate laggards. The Great Recession has crushed the people of Detroit, with unemployment...
06/02/2014
Blog
It is indeed remarkable that the Detroit’s Emergency Manager Kevyn Orr has agreed that existing pensioners can receive virtually all of their retirement benefits in a startling settlement proposal. Police and fire will receive their entire amounts (minus a portion of cost of living adjustment)...
04/16/2014
Blog
The unprecedented bankruptcy proceedings for Detroit lay bare the witch’s brew of fiscal devastation caused by the Great Recession and poor policy decisions that plague state and local governments throughout the land. The proceedings also cast a spotlight on the financial shenanigans that have been...
03/10/2014
Blog
The Detroit Emergency Manager, Kevyn Orr, has announced the third iteration of a settlement of a massive derivatives deal gone wrong, a key element of the largest municipal bankruptcy in history. On the surface, it appears to be a significant improvement over the prior versions. But appearances can...
03/04/2014
Blog
Detroit’s Emergency Manager, in a stunning reversal, followed the Demos recommendation to a “T” and filed a lawsuit challenging the validity of the 2005 $1.4 billion financing of contributions to the City’s pension funds. The money was raised under a complex structure called “certificates of...
02/04/2014
Blog
NEW YORK — Yesterday, U.S. Bankruptcy Judge Steven Rhodes grilled Jones Day lawyers representing the city of Detroit and the city’s Emergency Manager Kevyn Orr over a settlement reached outside of the bankruptcy process between the city and Bank of America and UBS to pay the termination fees of a...
12/19/2013
Press Release
In the wake of the Detroit bankruptcy, there has been no shortage of finger pointing, blame, and calls for “shared sacrifice.” On a personal note, I love hearing the phrase “shared sacrifice” because what usually follows is a lot of sacrifice that is rarely shared. And, the case in Detroit is no...
08/16/2013
Blog
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