Remember the news of yesterday, Detroit Councilwomen JoAnn Watson’s demand
that Obama pay up for the votes he received from the Detroit area?
Well,
apparently, Obama has told Ms
Watson to drop dead. The fact that Detroit
is not preparing for a managed bankruptcy is my proof of his response.
Even as the state Treasury prepares to begin another
financial review of Detroit's books, a plan is being solidified in the
governor's office that would guide Michigan's largest city through what is
being called a managed bankruptcy.
The working concept, still evolving, assumes that the
state's financial review would find severe financial distress in Detroit, that
Mayor Dave Bing and City Council would be unable to push through overdue
restructuring, and that the process would culminate in appointment of an
emergency financial manager under Public Act 72.
The case would be filed under Chapter 9 of the federal
bankruptcy code, according to two ranking sources familiar with the situation,
following efforts to reach pre-negotiated settlements with as many key creditors
— unions, vendors and pension funds among them — as possible before any filing. . . . . The Detroit News
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