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Wednesday, June 05, 2013

Detroit Bankruptcy Imminent

Following the State's takeover of Detroit's finances in March [5], it seems the end is growing 'nigh'er for the troubled city. According to the WSJ, Kevyn Orr, Detroit's emergency manager, plans to call unions and creditors to a meeting in mid-June to lay the groundwork for a bankruptcy within a matter of months. The meeting is designed to restructure the long-struggling city's liabilities of over $17bn and is an attempt to "have a mature and sober discussion" of repayment terms following its delayed payment in April of $226 million on pensions and other obligations. Several unions said they are willing to come to the table, but believe "it's a scare tactic."Up to now, Gov. Snyder and Detroit elected officials have said they want to avoid using bankruptcy (Detroit would be the biggest muni filing ever) to clean up the city's mess. But in recent days, their positions have softened, adding that, "I don't want to go to bankruptcy, but I do know that it is a strong possibility." Mr. Orr's office confirmed it was evaluating the potential sale of prized assets such as the artwork at the Detroit Institute of Art, a collection potentially worth billions.

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5 comments:

Anonymous said...

That's what happens when you keep electing Democrats year after year.

Anonymous said...

I agree with 9:30 am. This might happen to Salisbury if it wasn't for their constant taxes. Fortunately there are enough people left in Salisbury to pay the taxes. All the intelligent people have left Detroit and no one is there to pay taxes. The only population is the entitlement crowd that receives housing vouchers, Medicaid, Welfare and an Obama phone. Many of the property owners have just abandoned their buildings and properties. When you have nothing left but the 51% who don't work you receive no revenue to run a city. Drive down lake street right now and see how many unemployed are sitting on their porches watching you drive by. They more than likely have never owned an alarm clock. This is truly what happens when you elect Democrats.

Anonymous said...

Not to worry... O'b will declare them too big to fail and bail them out with phony money.! Keep the printing presses rolling.. There are also plenty of funds in the Social Security, Postal Retirement and 401k's that he can "confiscate".

Anonymous said...

If we didnt have the college students with all the rentals,we would be bankrupt also.

Anonymous said...

Sell your souls (i.e. arts) Yeah, great idea. We wouldn't want art around a sucking black hole ghetto now, would we? Get rid of anything that looks like you have class and pride so there's nothing but battleground left. Then, warring is easier because there's nothing left of value to steal or destroy!

Have a ball, Detroit!