Michigan Bankruptcy

More politicians are bringing attention to themselves regarding the City of Detroit’s bankruptcy filing – this time from Congressman John Conyers. Interestingly enough, Conyers wife, Monica Conyers, was a Detroit City Council member. In 2009, Mrs. Conyers pleaded guilty to federal bribery charges. She served 27 months in jail. It is a shame that the …

From Reuters, the Bankruptcy Court has set the date for initial oral arguments on Detroit’s eligibility under the bankruptcy code. The date set is much sooner than originally anticipated. Judge Steven Rhodes ordered late Monday that initial oral arguments in the case begin on September 18, well ahead of the October 23 date he originally …

The Detroit News is reporting that Judge Steven Rhodes, the bankruptcy judge assigned to the City of Detroit’s Chapter 9 filing, has ruled that objections regarding pension obligations must be decided after a ruling is made on Detroit’s eligibility for bankruptcy protection. A federal judge on Monday delayed hearing objections to Detroit’s bankruptcy case based …

Reuters discusses the constitutionality of the City of Detroit’s bankruptcy filing. Public labor unions took aim at Detroit’s historic bankruptcy filing on Monday, asking a U.S. court to toss the city’s bid for protection from its creditors because it is constitutionally flawed on both the state and federal levels. A union that represents public-sector workers …

Josh Linkner of Forbes has a new post regarding the lessons to take away from the City of Detroit’s bankruptcy filing. 1. Take painful action early, before problems get too big. As Ross Perot once explained, “If you see a snake, just kill it. Don’t appoint a committee on snakes.” Detroit’s negligence in dealing with …