14 March 2013

Teetering on the Edge: Detroit's Emergency Manager

As long predicted by me (here, here, and here) and lots of folks more knowledgeable than me, the Governor of Michigan has appointed an emergency financial manager for the City of Detroit. Read the NYT article here. And, as the article points out, Kevyn Orr is a very experienced bankruptcy lawyer.

Frankly, I don't see any way for Detroit to stay out of Chapter 9. There are simply too many entrenched interests for a compromise although the costs of bankruptcy would be enormous.

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