Posted on 12/03/2013 3:41:13 PM PST by Brad from Tennessee
DETROIT — Detroit is eligible to shed billions in debt in the largest public bankruptcy ever in the United States, a federal judge ruled Tuesday, while also finding that the public pensions could be reduced during reorganization despite a provision in Michigan’s Constitution.
In ruling that Detroit was eligible to reorganize under federal bankruptcy law, Judge Steven W. Rhodes said the city met every test of insolvency, including failing to pay its debts and being unable to provide a minimum level of basic services to its 680,000 residents.
“This once proud and prosperous city can’t pay its debts,” the judge said. “It’s insolvent. It’s eligible for bankruptcy. But it also has an opportunity for a fresh start.”
Appeals were expected to be filed quickly. Bruce Babiarz, a spokesman for Detroit’s fire and police retirement system, which supports 8,500 retirees, said lawyers were reviewing the ruling and expected to file an appeal by the end of the week. But the case will continue to move forward, with the next step being the city filing a “plan of adjustment.” It is unclear, however, what portions of the judge’s ruling may be appealed.
Under the ruling, the vastly diminished city, once the nation’s fourth largest and the cradle of the American auto industry, will be allowed to search for a way to pay off some portion of its debts and to restore essential services to tolerable levels under court supervision. The goal, according to Kevyn Orr, an emergency manager appointed by the state of Michigan, is to emerge from court protection next year with a formal plan for starting over. . .
(Excerpt) Read more at nytimes.com ...
Good news the Union Goons lose!
Ford should just buy the place for pennies on the dollar, and kick everyone out.
And forbidding black democrats from ever holding any public office in the city for the next 75 years. They have proven themselves incapable of self governance.
Sell it all to Matty Moroun.
He already owns most of it anyway.
Let’s turn the city over to the cockroaches, they’ll do a better job running it than any human has for the past 50 years.
This is good news for Michigan, although I am usually against bankruptcy. In this case, however, the unions have a stranglehold on the city of Detroit and they are in conflict with its non-state and city employed residents.
“... to provide the quality of city services the people of Detroit deserve.”
LOL I’d think that was the LAST thing they’d want!
Conservatism and free marketeering can save Detroit and America. Michelle Malkin was saying earlier today that the message of conservatism needs to be taken to Detroit.
As far as being the biggest city to go bankrupt, I doubt that record will stand for long.
IIRC, Michigan's Constitutional provision never did apply to this situation nor was it intended to. If that is the case, the New York Slimes is up to its same old liberal lying tricks.
Would be interested to read some knowledgeable comments on the state constitutional aspect.
Matty Maroun seems to have spent his entire life trying to destroy both Detroit and Windsor. People don’t realize how much of the decay in Detroit has Maroun’s name on the deed and he’s one of the wealthiest men in America. The train station is just one example.
He’s being sued in Windsor over some 300 properties he owns and has left to rot.
Just put Detroit on Ebay.
“The only hope to resurrect Detroit will have to come from private investors with carte blanc powers. “
It does not matter what the courts or the city does. Detroit is doomed. The reason to have cities is that there were lots of employers. What employer will move there? Why would they move there? What would they produce? What is their incentive to move there?
Cities are no longer needed. They are a relic of the past. Liberals try to force us to move into them by making fuel costs high and limiting how much we can drive. But no matter what they do there is no reason for us to move back to the cities with their attendant problems like drugs, bad schools and high crime.
Name your initial bidding price for Detroit.
seriously, take all the illegal aliens they want to give amnesty to, and make them move to Detroit in order to get amnesty. Or give it to the Canadians.
The laugh of the article was this: “They’ll lose their health insurance” ...... which I found quite ironic because they can have Obamacare.
Ain’t gonna do a thing for them.
That joint is cooked...who’s going to be building up new businesses there?
CommieCare Navigators?
One Nigerian penny.
One post WWI German penny equivalent...
oh, that is so racist.... I mean true....
Every government sub division including public schools need to take note. Wages, pensions, and other benefits are grossly overpaid to government employees. These people should receive pay and benefits at an equivalent level to private industry workers. I find it disgusting to see regular citizens including young people just starting out who scrimp just to pay taxes and otherwise get by, while their elite government employee brethren live an elite life of job security and priviledge. We can start by shifting government employees over to Obamacare with a meaningful contribution paid by the government employees themselves. Follow that with the elimination of government unions. Follow that with privatization of most government functions.
“As far as being the biggest city to go bankrupt, I doubt that record will stand for long.”
Yeah, can you say Los Angeles!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.