Father Sues District Over Reading About Slavery

MOUNT CLEMENS, Mich. - (AP) The father of a black student has sued a Detroit-area school district claiming that his daughter was racially harassed by a fifth-grade teacher's reading aloud from a book about slavery. The suit claims Jala Petree's teacher at Margaret Black Elementary School in Sterling...

Panic in Detroit? Motor City Moves Closer to Possible Chapter 9 Filing

Detroit has seen signs of revival in its urban core following the near-death experiences of GM and Chrysler. Unfortunately, its municipal finances remain beaten down by the city's long and precipitous decline over the past several decades. Labor and legacy costs, incurred when the auto industry...

Detroit Emergency Manager Posits Sale of Art Masterpieces as Bankruptcy Looms -Van Gogh(ing) Once, Twice, Sold?

Kevyn Orr , the emergency manager appointed by Michigan Governor Rick Snyder to try to resolve the Detroit financial crisis , has effectively replaced the Detroit mayor, former NBA legend Dave Bing . However, it is Orr who in the upcoming weeks will need to hit the equivalent of a three-point shot...

Detroit Creditors Asked to Take Haircut (at Sweeney Todd's Barbershop)

Everyone gathered last week at the meeting convened by Detroit Emergency Manager Kevyn Orr knew that the news would be dire. Nonetheless, Orr's report on Detroit's financial condition and his proposal for the treatment of the city's creditors - an offer of approximately ten cents on the dollar...

T Visa Grant Ends 10-Year Ordeal

"Her decade-long battle was finally over. She could stay. Cayla Roberts, a 25-year-old graduate student at Western Michigan University, would not be deported back to China, a country she was smuggled away from at age 14 by human traffickers known as snakeheads. She had been sold into the sex trade...

Detroit Files for Chapter 9 Bankruptcy; Cash Flow at Negative $198.5M

DETROIT — (Mealey’s) The City of Detroit late on July 18 filed for Chapter 9 bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Michigan as its emergency manager declared that the city is insolvent and that, absent restructuring, he projects cash flows of negative $198.5...

Michigan Governor Rick Snyder Endorses Detroit Bankruptcy

Michigan Gov. Rick Snyder (R) signed off on the city of Detroit's Chapter 9 bankruptcy filing on Thursday, instigating the largest municipal bankruptcy case in the nation's history. The filing was made in U.S. District Court for the Eastern District of Michigan after Kevyn Orr, the emergency...

Cadwalader Clients & Friends Memo: City of Detroit Files Chapter 9 Bankruptcy Petition – Challenges Ahead

On the afternoon of July 18, 2013, the City of Detroit filed its highly anticipated petition for relief under Chapter 9 of the Bankruptcy Code in the Bankruptcy Court for the Eastern District of Michigan. This marks the largest municipal bankruptcy filing in United States history. [1] As a result of...

Cadwalader Clients & Friends Memo: Court Approves Extension of the Automatic Stay in Detroit’s Chapter 9 Case to State Officials

On July 24, 2013, Judge Steven W. Rhodes of the Bankruptcy Court for the Eastern District of Michigan approved the City of Detroit’s motion to extend the automatic stay to various non-debtor parties, including certain state officials. The Court’s ruling effectively stays all pending litigation...

Snyder Says Detroit Won't Sell Art Assets

Michigan Gov. Rick Snyder (R) said the state has no plans to sell any artwork from the Detroit Institute of Art as part of the city's Chapter 9 bankruptcy filing. Speculation has been rampant for months that pieces from the museum collection would be sold. Fears ramped up further last week after...

The Shadow of Detroit: Pension Gaps Threaten Cities and States

by Lou Cannon Detroit's bankruptcy made a brief splash last month before being driven from the headlines by terrorist warnings, congressional intransigence and the sexual shenanigans of a New York City mayoralty candidate and the San Diego mayor. But as a possible portent for other cities and...

I-485 Mandamus Victory in Detroit: Labaneya v. USCIS

"In this case, Mr. Baytiyeh's I-485 application for Adjustment of Status has been pending for more than four years. The only explanation for the four-year delay provided by Defendants is that offered in the Declaration of Jovana Gjelaj, a Senior Immigration Services Officer stationed in the...

Creditors Object to Detroit Bankruptcy

Scores of retirees and creditors, including the American Federation of State, County and Municipal Employees, have challenged Detroit's historic Chapter 9 bankruptcy filing, arguing that it is unconstitutional because it could be used to slash retiree pensions and that Emergency Manager Kevyn Orr...

White House: $311.33M Will Be Provided to Detroit to Assist Bankruptcy Recovery

WASHINGTON. D.C — (Mealey’s) The White House announced on Sept. 27 that it is providing more than $311 million to help the bankrupt City of Detroit through a combination of federal block grant programs as well as money from the U.S. Department of Transportation (DOT), the Federal Emergency...

Bankruptcy Judge: Detroit Is Eligible for Chapter 9; Unions Appeal Immediately

DETROIT — (Mealey’s) The federal bankruptcy judge presiding over the Chapter 9 case filed by the City of Detroit issued a verbal ruling today from the bench stating that the city is eligible to file for bankruptcy, a source said. The unions representing city employees immediately filed a...

Detroit's Bankruptcy: the Pension Issue

Judge Rhodes ruled yesterday that the city's bankruptcy can proceed. He also ruled that the state constitutional provision that protects state employees' pensions from being diminished or impaired is preempted by federal law. Appeals will be filed, but the bankruptcy will move forward. Judge...

Detroit Bankruptcy Ruling Imperils Pensions

by Korey Clark This month the federal bankruptcy court judge presiding over Detroit's bankruptcy case, ruled that the city's public pensions were not untouchable, even though they are expressly protected under Michigan's Constitution. "Pension benefits are a contractual right and...

Heard About Detroit? The First Word on Treatment of Public Employee Pension Benefits in Chapter 9 (And Absolutely Not the Last)

by Ben Feder The recent ruling by Judge Stephen Rhodes finding the City of Detroit eligible for protection under Chapter 9 of the U.S. Bankruptcy Code has rightly received considerable attention. The determination that Detroit has met the standards under Section 109(c) of the Bankruptcy Code to be...

Michigan Governor Seeks Visas to Lure Skilled Immigrants to Detroit

"Michigan Gov. Rick Snyder asked the federal government Thursday to set aside thousands of work visas for highly skilled immigrants willing to live and work in the bankrupt city of Detroit for five years. "Let's send a message to the entire world: Detroit, Michigan, is open to the world...

Michigan Governor Wants to Open Bankrupt Detroit to World

Last month Michigan Gov. Rick Snyder (R) unveiled a plan to help revitalize bankrupt Detroit: issue special visas to lure highly skilled immigrants to the city, or as he put it, send the message that "Detroit is open to the world." The city's population has plunged by over 1 million since...

Abandoned houses Detroit

Detroit’s Proposed Plan of Adjustment – Two Crucial Questions

by Ben Feder The chapter 9 bankruptcy case of the City of Detroit has been as complex and litigious as anticipated . Nevertheless, Emergency Manager Kevyn Orr has kept plodding forward, and last week filed a proposed plan of adjustment , the road map for the Motor City to emerge from bankruptcy. There...