Go here to read the latest news account of what appears to be a deal with Detroit's remaining large creditor, Financial Guaranty Insurance Corporation (FGIC). My earlier accounts of FGIC's increasingly isolated position can be found here and here.
All of which is to say that confirmation of Detroit's plan of adjustment seems almost a forgone conclusion. It shouldn't be. Serious questions about the plan's feasibility remain. (Check my Municipal Bankruptcy: When Doing Less Is Doing Best (download here) and Who Bears the Cost? The Necessity of Taxpayer Representation in Chapter 9 (download here) for explanations of feasibility and its requirements.)
Yet with the skids greased and the public looking forward to a quick exit from the straitjacket of bankruptcy court supervision, I expect Judge Rhodes to enter an order confirming the plan before the end of October.
All of which is to say that confirmation of Detroit's plan of adjustment seems almost a forgone conclusion. It shouldn't be. Serious questions about the plan's feasibility remain. (Check my Municipal Bankruptcy: When Doing Less Is Doing Best (download here) and Who Bears the Cost? The Necessity of Taxpayer Representation in Chapter 9 (download here) for explanations of feasibility and its requirements.)
Yet with the skids greased and the public looking forward to a quick exit from the straitjacket of bankruptcy court supervision, I expect Judge Rhodes to enter an order confirming the plan before the end of October.
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