This was done because the city believed, based on advice, that the. Apr 02, 2014 constitutional challenges to the detroit bankruptcy. Jul 18, 20 detroit filed for chapter 9 bankruptcy this afternoon, making it the largest city in the u. On july 18, 20, the city of detroit, michigan declared bankruptcy. 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. 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. Bankruptcy court for the eastern district of michigan, southern division, nov. 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. In re city of detroit bankruptcy judge steven rhodes november 7, 2014. Nov 09, 2014 in 2011, they started strategizing fixit scenarios with ken buckfire, a new yorkbased investment banker and detroit native. Introduction on july 18, 20, detroit filed for chapter 9 bankruptcy, becoming the largest municipality to file for bankruptcy in united. City of detroit files for bankruptcy financial times.
The citys woes have been long documented, but the path toward bankruptcy. Federalism form and function in the detroit bankruptcy. Detroit federal attorney barton morris speaks about detroits bankruptcy, and its effect on the law. Metro detroit and michigan state chapters of the aflcio issued a joint statement that the citys attempt to negotiate with workers to. Perhaps nowhere is that difference more apparent than in the roles of, and the relationship between, detroits elected leadership. Detroit s bankruptcy ruling and its relevance to sdcers date.
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. Dec 05, 20 the recent bankruptcy ruling in detroit has generated considerable speculation about its potential impact on pension benefits for california public employees. 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. The city of detroit, michigan, filed for chapter 9 bankruptcy on july 18, 20. 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.
Dec 05, 20 the recent bankruptcy ruling in detroit has generated considerable speculation about its potential impact on pension benefits. In the courts eligibility opinion, it held that the federal bankruptcy power could impair pension right in a municipal case, even if the. When a bankruptcy filing became in evitable, they all knew the. Cbs news detroit, which became the largest city to declare bankruptcy in u. 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. Constitutional challenges to the detroit bankruptcy. Tracking detroits economic recovery after bankruptcy with. In re dow corning corporation, debtor on february 5, 2001, the honorable denise page hood entered an amended opinion relating to. The scope of my engagement is limited to providing an opinion. Attorney general bill schuettes statement regarding the michigan constitution and the bankruptcy of the city of detroit pdf. Detroit bankruptcy ruling good news for muni bonds. Dec 04, 20 detroit s bankruptcy ruling is good news for bondholders, and unlikely to inspire more filings. Detroit entered bankruptcy in july 20 and exited bankruptcy just 18 months later, in december 2014.
Metro detroit and michigan state chapters of the aflcio issued a joint statement that the citys attempt to negotiate with workers to solve. Yet it still faces a test of finding a sustainable course for a struggling city. Nevertheless, the court is satisfied that this opinion does address every argument. Detroit files for bankruptcy news of the nation, 20. However, that figure is irrelevant to analysis of detroit s insolvency and bankruptcy filing, highly inflated and, in large part, simply inaccurate.
On july 18, 20, detroit filed for chapter 9 bankruptcy. United states bankruptcy court eastern district of michigan southern division in re. In re city of detroit bankruptcy judge steven rhodes november. Detroit attorneys for the city say they hope to present on thursday a settlement in u. On july 18, 20, detroit became the nations largest public sector bankruptcy. Tracking detroits economic recovery after bankruptcy with a new index. Detroits bankruptcy ruling is good news for bondholders, and unlikely to inspire more filings. Constitutional challenges to the detroit bankruptcy the. Detroit is approaching its oneyear anniversary of emerging from the nations largestever municipal bankruptcy, and the city has changed. Detroit is out of bankruptcy, but not out of the woods the. Children play in the sand at campus martius park in downtown detroit, michigan, u. Chapter 9 city of detroit, michigan, case united states bankruptcy. Detroit is out of bankruptcy, but not out of the woods. After municipal bankruptcy the pew charitable trusts.
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. Before the motor city filed, just over 60 cities, counties, towns and villages had filed for bankruptcy under chapter 9, the procedure. 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. Detroit filed the largest municipal bankruptcy in the nations history thursday, marking a new low in a long decline that has left the u.
Apr 24, 2016 children play in the sand at campus martius park in downtown detroit, michigan, u. I am a senior editor at forbes, covering legal affairs, corporate finance, macroeconomics and. Nov 09, 2014 9 ways detroit is changing after bankruptcy. After municipal bankruptcy lessons from detroit and other local governments. Bankruptcy court with detroits largest remaining holdout creditor. The city of detroits bankruptcy was driven by a severe decline. Detroit bankruptcy and others illustrate some of the unique and challenging problems.
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. Rhodes attorney general bill schuettes statement regarding the michigan constitution and the bankruptcy of the city of detroit bill schuette attorney general john j. 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. In the courts eligibility opinion, it held that the federal bankruptcy power could. Dec 11, 2014 detroit is emerging from the largest municipal bankruptcy in american history. Postbankruptcy, a booming detroit is still fragile its been one year since the city of detroit exited the largest municipal bankruptcy in u. The report amounted to the first substantial critique, from an expert perspective, of the emergency managers appointed mission to take the city through bankruptcy. Consequences of detroits bankruptcy for pensioners a. 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. Detroits bankruptcy ruling and its relevance to sdcers. Jul 21, 20 cbs news detroit, which became the largest city to declare bankruptcy in u. Accordingly, the court finds that the city may be a debtor under chapter 9 of the bankruptcy code. Oral opinion on the record at 7, in re city of detroit bankr.
Detroit is emerging from the largest municipal bankruptcy in american history. News sports entertainment life money tech travel opinion. Detroit filed for chapter 9 bankruptcy this afternoon, making it the largest city in the u. In re city of detroit bankruptcy judge steven rhodes. Plan to exit bankruptcy is approved for detroit the new. 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. Jul 19, 20 news sports entertainment life money tech travel opinion. Detroit s bankruptcy filing came with the approval of michigan governor rick. Detroits teachers union will appeal the bankruptcy ruling according to randi weingarten, national. For release and posting following the conclusion of the oral. Sdcers detroits bankruptcy ruling and its relevance to. Oct 14, 2014 detroit attorneys for the city say they hope to present on thursday a settlement in u. In 2011, they started strategizing fixit scenarios with ken buckfire, a new yorkbased investment banker and detroit native. Detroit files for bankruptcy news of the nation, 20 year.
It is the largest municipal bankruptcy filing in u. Nov 09, 2015 detroit is approaching its oneyear anniversary of emerging from the nations largestever municipal bankruptcy, and the city has changed. Where detroits public services stand now and plans for improving them. Detroit presents a study in the lessons of a large municipal bankruptcy.