By Nick Carey
(Reuters) – The key to eligibility for U.S. Chapter 9 bankruptcy protection for Detroit, as it is for any municipality, lies in proving the city is insolvent and has negotiated in good faith with creditors.
Few could disagree that the city is in woeful financial shape. It has long-term debts of $18.5 billion and has seen its population decline to 700,000 from a peak of 1.8 million in 1950, a loss of tax base that would cause trouble for any city.
DETROIT (Reuters) – Detroit’s emergency manager voiced confidence on Wednesday that the city could emerge from bankruptcy before his term expires in October 2014 and possibly without having to borrow more money.
Even so, Kevyn Orr, the bankruptcy expert who was appointed in March to a post that gives him almost unlimited power over Detroit’s finances, warned that the path back to financial health will not be painless for Detroit’s creditors.
DETROIT (Reuters) – Detroit’s emergency manager voiced confidence on Wednesday that the city should be able to emerge from bankruptcy before his term expires in October 2014, and possibly without having to borrow new money.
Even so, Kevyn Orr, the bankruptcy expert who was appointed in March to a post that gives him almost unlimited power over Detroit’s finances, warned that the path back to financial health will not be painless.
DETROIT, Aug 2 (Reuters) – In a high-stakes hearing on
Friday in Detroit’s bankruptcy filing, a judge approved a city
plan to form a creditors’ committee of retired workers, but gave
unions and pension funds that opposed the plan a measure of
satisfaction by declaring an independent trustee – and not the
city – will select committee members.
Federal bankruptcy Judge Steve Rhodes’ ruling on the city’s
effort to create a new negotiating partner independent of unions
and pension funds was a key moment in a three-hour session that
packed the largest courtroom in Detroit’s downtown federal
building. Rhodes also put off setting a date for a hearing on
Detroit’s eligibility to file for bankruptcy, while Detroit
lawyers disclosed an ambitious aim to present a plan for
reorganization by the end of 2013.
DETROIT (Reuters) – Detroit aims to file a restructuring plan by the end of 2013, earlier than a date previously proposed by the federal bankruptcy judge overseeing the case, an attorney for the city said Friday during the second hearing in the historic case.
Detroit’s proposed filing date would be much sooner than the March 1, 2014 date proposed by U.S. Bankruptcy Judge Steven Rhodes earlier this week.
DETROIT (Reuters) – Detroit emergency manager Kevyn Orr has a long list of things to fix in the city and among them is one that may sound surprising: there are not enough skilled workers to fill job openings as they become available.
“Every problem in this city revolves around jobs,” said Lindsay Chalmers, vice president of non-profit Goodwill Industries of Greater Detroit. “That’s at the heart of the issue for Detroit.”
DETROIT (Reuters) – For nearly six decades Detroit’s story has been one of relentless erosion of its once mighty manufacturing base, but even as the Motor City faces a long bankruptcy a clutch of small producers has moved in to rekindle the “Made in Detroit” brand.
Making products ranging from bicycles to luxury watches and “sleeping bag” coats designed for the homeless, these small firms have tapped into a surprising amount of demand for goods made in a city more commonly associated today with failure and decline.
DETROIT (Reuters) – Michigan Attorney General Bill Schuette says he sees no conflict in representing the state’s governor, who approved Detroit’s bankruptcy filing, while at the same time representing Detroit’s retirees, who assert that the filing is illegal.
In both cases, Schuette said, he is defending Michigan’s constitution. He also pointed out that his office is often called upon to appear on conflicting sides of the same case.
DETROIT (Reuters) – If you want to tackle Detroit’s thousands of abandoned homes and trash-strewn and overgrown lots, there are few better places to start than in Brightmoor in the northwestern corner of the city.
“Brightmoor is arguably one of the most blighted areas in Detroit, which makes it one of the most blighted areas in the country,” said Kirk Mayes, executive director of community group the Brightmoor Alliance. “If you can tackle blight in Brightmoor, you can do it anywhere.”
DETROIT (Reuters) – Defending his decision to approve America’s largest ever bankruptcy filing in Detroit last week, Rick Snyder returned to a point that he has been hitting on since his successful run for governor in 2010: for Michigan to thrive, Detroit must prosper.
“We’re the comeback state in Michigan, but to be a great state we need…Detroit on the path to being a great city again,” the Republican governor said at a press conference on Friday.