
Respectfully Submitted by Lawrence E. Rafferty (rafflaw)-Guest Blogger
On July 18th, 2013, the City of Detroit made news because the state appointed emergency manager officially filed for a Chapter 9 bankruptcy. “Detroit filed the largest municipal bankruptcy in U.S. history on Thursday, setting the stage for a costly court battle with creditors and opening a new chapter in the long struggle to revive the city that was the cradle of the American auto industry.
The bankruptcy, if approved by a federal judge, would force Detroit’s thousands of creditors into negotiations with the city’s Emergency Manager Kevyn Orr to resolve an estimated $18.5 billion in debt that has crippled Michigan’s largest city.” Tribune
There is no dispute that the City of Detroit has been mismanaged for years, but now that the Emergency Manager has filed the bankruptcy, just who will lose the most in the bankruptcy process? Continue reading “Will Detroit’s Pensioners Lose out to Big Banks?” →