05 October 2013

Less Than 9 To Go

To no one's surprise, Reuters reports here that Stockton's city council approved submission of the plan of adjustment I mentioned here. I'm still not sure if the full terms of the plan are available to the public but soon the disclosure statement will be on file so we can evaluate how far each of the principal combatants--Stockton's retirees and its bond insurers--moved toward the middle.

The draft of my article about Chapter 9 (municipal) bankruptcy that I posted here has been superseded by a version that's currently resting in the offices of a number of law reviews awaiting a decision on publication. I may pull it from consideration if only to report that my conclusion--that Chapter 9 is a federal forum for a high-stakes game of Chicken--has been borne out in practice.

The implications for Detroit are clear. Given Detroit's more highly politicized  frame of reference, however, I'm not sure that one of the parties won't pull a Buzz Gunderson and drive the city over a cliff.

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