Tag archive for Detroit

Detroit pension debt under any other name is still…

… debt. That’s what Detroit emergency manager Kevyn Orr and city officials contend in their lawsuit which seeks to overturn a 2005 financial maneuver that pumped $1.44 billion into the city’s pension system.Playing hardball, Detroit has now subpoenaed The Bond Buyer trade publication, seeking records related to the publication’s subsequent decision to award the administration of then mayor Kwame Kilpatrick and the highly controversial transaction the Midwest Deal of the Year in 2005. Alas, there are a few others the city is probably also talking to who took bows back then for the deal…

Stockton must face last angry creditor

Bankrupt Stockton heads to court on Monday to win approval for its plan to exit Chapter 9, but it still has not crafted an agreement with one The-U.S.-Government-Is-Our-Biggest-Creditor-and-Other-Statisticsmajor creditor, Franklin Advisers, which is being asked to take a gigantic haircut in the case. Instead, Franklin will argue that Stockton hasn’t done enough to cut its debts, especially its pension costs.If Franklin can’t persuade U.S. Bankruptcy Judge Christopher Klein to force Stockton and Calpers to come to some kind of deal reducing the city’s pension debts…

Municipal bankruptcy and war

Rhodes MemeBankruptcy, like war, is an extraordinary means for resolving disputes that appear irresolvable under ordinary conditions. Much of what Detroit seeks to accomplish in bankruptcy could have been accomplished outside of federal court, but only with great difficulty

Agenda for Detroit: Rebirth through entrepreneurship, a dispatch from the future

This is the fourth article in the series “Agenda for Detroit,” the purpose of which is to offer policy recommendations for a post-bankrupt Detroit. The series will culminate with the live stream event “Detroit: The Next American City of Opportunity,” featuring Gov. Rick Snyder and Emergency …

Agenda for Detroit: Government on a more human scale

This is the third article in a series Public Sector Inc. will be running over the next two weeks. The purpose is to offer policy recommendations for a post-bankrupt Detroit. The series will culminate with the live stream event “Detroit: The Next American City of Opportunity,” …

Agenda for Detroit: What role state government should play after bankruptcy

This is the second article in a series Public Sector Inc. will be running over the next two weeks. The purpose is to offer policy recommendations for a post-bankrupt Detroit. The series will culminate with the live stream event “Detroit: The Next American City of Opportunity,” …

Agenda for Detroit: It’s all about the tax base

This is the first article in a series Public Sector Inc. will be running over the next two weeks. The purpose is to offer policy recommendations for a post-bankrupt Detroit. The series will culminate with the live stream event “Detroit: The Next American City of …

Going nuclear in Detroit….

Detroit financial manager Kevyn Orr has filed a plan to reduce the city’s debt and exit bankruptcy, formerly dubbed the plan of adjustment,and it has few Orr 1surprises, largely doing what Orr has said he would do. But that doesn’t mean it isn’t unprecedented, nonetheless. Orr has, in the last few months, shaken up the municipal finance business with his lawsuits challenging financing techniques previously considered sacrosanct, so much so that one municipal bond firm accused him of going nuclear…

Will other cities follow Detroit? The answer depends on much more than pensions.

It was appropriate, last December, for the national media to devote as much attention as it did to Judge Steven Rhodes’ statement that pension cuts in Detroit were on the table. This gave the city crucial leverage in its negotiations with creditors, which will facilitate …

Detroit pension borrowings: What a tangled web….

There’s a rich irony in the news that current Detroit officials are suing in bankruptcy court to renounce the pension debt transacted by the administration of Kwame Kilpatrick back in 2005. The claim of Detroit officials today, that the $1.44 billion in borrowing was illegal because Detroit used elaborate gimmicks to circumvent debt limits, echoes lawsuits filed by taxpayer groups in many state courts over the years to stop similar borrowing ploys…