Sdcers detroits bankruptcy ruling and its relevance to. Before the motor city filed, just over 60 cities, counties, towns and villages had filed for bankruptcy under chapter 9, the procedure used by municipalities in courts since the mid1950s. Yet it still faces a test of finding a sustainable course for a struggling city. Detroit is emerging from the largest municipal bankruptcy in american history. Aug 12, 2015 the recent highprofile bankruptcy filings by detroit and a handful of other local governments around the country have renewed state and local policymaker interest in strategies to prevent future financial crises as well as in the choices states face about whether to intervene to help distressed cities and counties. In re dow corning corporation, debtor on february 5, 2001, the honorable denise page hood entered an amended opinion relating to appeals from and motions regarding the bankruptcy courts november 30, 1999 confirmation order. Rhodes attorney general bill schuettes statement regarding the michigan constitution and the bankruptcy of the city of detroit bill schuette attorney general john j. The city of detroit files for chapter 9 federal bankruptcy protection, making the automobile capital and onetime music powerhouse the countrys largestever municipal bankruptcy case.
Nevertheless, the court is satisfied that this opinion does address every argument. Consequences of detroits bankruptcy for pensioners a. In the courts eligibility opinion, it held that the federal bankruptcy power could impair pension right in a municipal case, even if the. Chapter 9 city of detroit, michigan, case united states bankruptcy. Detroit is approaching its oneyear anniversary of emerging from the nations largestever municipal bankruptcy, and the city has changed. Detroit less than 16 months after detroit became the largest city in the united states to file for bankruptcy, a federal judge on friday approved a plan intended to help it escape years of. How detroits bankruptcy may affect court cases and law.
For release and posting following the conclusion of the oral opinion oral opinion on the record in re city of detroit bankruptcy judge steven rhodes november 7, 2014. Detroit filed for chapter 9 bankruptcy this afternoon, making it the largest city in the u. United states bankruptcy court eastern district of michigan southern division in re. Detroit bankruptcy ruling good news for muni bonds. After municipal bankruptcy the pew charitable trusts. Attorney general bill schuettes statement regarding the michigan constitution and the bankruptcy of the city of detroit pdf. Dec 11, 2014 detroit is emerging from the largest municipal bankruptcy in american history. Nov 09, 2014 9 ways detroit is changing after bankruptcy. Detroits bankruptcy ruling is good news for bondholders, and unlikely to inspire more filings. I am a senior editor at forbes, covering legal affairs, corporate finance, macroeconomics and. Jul 18, 20 detroit filed the largest municipal bankruptcy in the nations history thursday, marking a new low in a long decline that has left the u. However, that figure is irrelevant to analysis of detroit s insolvency and bankruptcy filing, highly inflated and, in large part, simply inaccurate.
Aug 11, 20 so much is packed into the dramatic event of detroits fall the largest municipal bankruptcy in american history that its worth taking a pause to see what it says about our changing economy and society, and what it portends for our future. Detroit city of mi update to credit analysis following revision of outlook to positive summary detroit s ba3 positive recovery is real, but so too are serious lingering economic challenges. Dec 05, 20 the recent bankruptcy ruling in detroit has generated considerable speculation about its potential impact on pension benefits for california public employees. When a bankruptcy filing became in evitable, they all knew the detroit. The court will enter an order for relief under chapter 9. Summary of opinion for the reason stated herein, the court finds that the city of detroit has established that it meets the requirements of 11 u. In re city of detroit bankruptcy judge steven rhodes november 7, 2014. In re city of detroit bankruptcy judge steven rhodes november. Detroit, bankruptcy, and how to save a city opinion. Detroit federal attorney barton morris speaks about detroits bankruptcy, and.
Detroit federal attorney barton morris speaks about detroits bankruptcy, and its effect on the law. Introduction on july 18, 20, detroit filed for chapter 9 bankruptcy, becoming the largest municipality to file for bankruptcy in united. Oct 14, 2014 detroit attorneys for the city say they hope to present on thursday a settlement in u. After municipal bankruptcy lessons from detroit and other local governments. Detroit presents a study in the lessons of a large municipal bankruptcy.
The report amounted to the first substantial critique, from an expert perspective, of the emergency managers appointed mission to take the city through bankruptcy. Constitutional challenges to the detroit bankruptcy the. Accordingly, the court finds that the city may be a debtor under chapter 9 of the bankruptcy code. Dec 04, 20 detroit s bankruptcy ruling is good news for bondholders, and unlikely to inspire more filings. In re city of detroit bankruptcy judge steven rhodes. Jul 21, 20 cbs news detroit, which became the largest city to declare bankruptcy in u. News sports entertainment life money tech travel opinion. Jul 18, 20 detroit filed for chapter 9 bankruptcy this afternoon, making it the largest city in the u. Bankruptcy court for the eastern district of michigan, southern division, nov. Federalism form and function in the detroit bankruptcy. Dec 05, 20 the recent bankruptcy ruling in detroit has generated considerable speculation about its potential impact on pension benefits. Detroit is out of bankruptcy, but not out of the woods the.
Detroits bankruptcy ruling and its relevance to sdcers. Detroit s bankruptcy filing came with the approval of michigan governor rick. Postbankruptcy, a booming detroit is still fragile. Children play in the sand at campus martius park in downtown detroit, michigan, u. In the courts eligibility opinion, it held that the federal bankruptcy power could. Perhaps nowhere is that difference more apparent than in the roles of, and the relationship between, detroits elected leadership. Plan to exit bankruptcy is approved for detroit the new. When a bankruptcy filing became in evitable, they all knew the. This case discusses the positioning of detroit as an industrial city, the short sightedness of city managers, the factors that led to the bankruptcy of the city particularly the mismanagement. Detroit files for bankruptcy news of the nation, 20 year. Detroit s bankruptcy ruling and its relevance to sdcers date. On july 18, 20, detroit became the nations largest public sector bankruptcy. Nov 09, 2015 detroit is approaching its oneyear anniversary of emerging from the nations largestever municipal bankruptcy, and the city has changed. Detroit attorneys for the city say they hope to present on thursday a settlement in u.
Jul 19, 20 news sports entertainment life money tech travel opinion. City of detroit files for bankruptcy financial times. Apr 02, 2014 constitutional challenges to the detroit bankruptcy. Detroit city of mi update to credit analysis following revision of outlook to positive summary detroits ba3 positive recovery is real, but so too are serious lingering economic challenges. Detroit entered bankruptcy in july 20 and exited bankruptcy just 18 months later, in december 2014.
For release and posting following the conclusion of the oral. Cbs news detroit, which became the largest city to declare bankruptcy in u. Nov 08, 2014 detroit less than 16 months after detroit became the largest city in the united states to file for bankruptcy, a federal judge on friday approved a plan intended to help it escape years of. Detroit files for bankruptcy news of the nation, 20. Detroit is out of bankruptcy, but not out of the woods. Where detroits public services stand now and plans for improving them.
Apr 24, 2016 children play in the sand at campus martius park in downtown detroit, michigan, u. In re dow corning corporation, debtor on february 5, 2001, the honorable denise page hood entered an amended opinion relating to. Postbankruptcy, a booming detroit is still fragile its been one year since the city of detroit exited the largest municipal bankruptcy in u. Bankruptcy court with detroits largest remaining holdout creditor. The scope of my engagement is limited to providing an opinion.
On july 18, 20, detroit filed for chapter 9 bankruptcy. Detroit filed the largest municipal bankruptcy in the nations history thursday, marking a new low in a long decline that has left the u. Before the motor city filed, just over 60 cities, counties, towns and villages had filed for bankruptcy under chapter 9, the procedure. The city of detroit, michigan, filed for chapter 9 bankruptcy on july 18, 20. Oral opinion on the record at 7, in re city of detroit bankr. The city of detroits bankruptcy was driven by a severe decline.
The citys woes have been long documented, but the path toward bankruptcy. Metro detroit and michigan state chapters of the aflcio issued a joint statement that the citys attempt to negotiate with workers to. Detroit bankruptcy and others illustrate some of the unique and challenging problems. It is the largest municipal bankruptcy filing in u. Detroits teachers union will appeal the bankruptcy ruling according to randi weingarten, national. Metro detroit and michigan state chapters of the aflcio issued a joint statement that the citys attempt to negotiate with workers to solve. On july 18, 20, the city of detroit, michigan declared bankruptcy. An influx of affluent residents and a return of employers downtown has led to a surge in income taxes exhibit 1, an important revenue source for the.
This was done because the city believed, based on advice, that the. Nov 09, 2014 in 2011, they started strategizing fixit scenarios with ken buckfire, a new yorkbased investment banker and detroit native. Tracking detroits economic recovery after bankruptcy with. In 2011, they started strategizing fixit scenarios with ken buckfire, a new yorkbased investment banker and detroit native.