Recent Posts

Snyder Says Detroit Won't Sell Art Assets
Posted on 12 Aug 2013 by State Net

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... Read More

Heard About Detroit? The First Word on Treatment of Public Employee Pension Benefits in Chapter 9 (And Absolutely Not the Last)
Posted on 19 Dec 2013 by Kelley Drye & Warren LLP

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... Read More

Detroit Emergency Manager Posits Sale of Art Masterpieces as Bankruptcy Looms -Van Gogh(ing) Once, Twice, Sold?
Posted on 5 Jun 2013 by Kelley Drye & Warren LLP

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... Read More

Creditors Object to Detroit Bankruptcy
Posted on 3 Sep 2013 by State Net

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... Read More

Stockton Judge: Pension Obligations Are Not Impervious to Impairment In Chapter 9 Bankruptcy. What Comes Next?
Posted on 17 Oct 2014 by Kelley Drye & Warren LLP

by Ben Feder The perception that public employee pension obligations cannot be impaired in bankruptcy suffered a damaging blow several months ago in the City of Detroit bankruptcy case , and has now been fatally wounded by the recent ruling of Judge... Read More

Michigan Governor Wants to Open Bankrupt Detroit to World
Posted on 3 Feb 2014 by State Net

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... Read More

Stockton, California Chapter 9 Filing - Another Outlier, Or Harbinger?
Posted on 2 Jul 2012 by Kelley Drye & Warren LLP

Meredith Whitney, one of the first financial analysts to foresee the collapse of the housing market, famously predicted in December 2010 that a wave of municipal bond defaults was on the way . The wave, however, has yet to materialize, and the bankruptcy... Read More

Michigan Governor Rick Snyder Endorses Detroit Bankruptcy
Posted on 23 Jul 2013 by State Net

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... Read More

Steel Cage Match Between CALPERS and Bond Investors Continues in San Bernardino Chapter 9 Case
Posted on 10 Jan 2013 by Kelley Drye & Warren LLP

by Ben Feder The battle in California municipal bankruptcies between bond investors and Calpers , the California public employee pension system, began in the Stockton Chapter 9 bankruptcy case and continues unabated in the bankruptcy case of San... Read More

Panic in Detroit? Motor City Moves Closer to Possible Chapter 9 Filing
Posted on 2 Jan 2013 by Kelley Drye & Warren LLP

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... Read More

Game On in Stockton, CA Chapter 9 Case - Bond Insurer Sets Focus on Calpers
Posted on 17 Aug 2012 by Kelley Drye & Warren LLP

The Olympics may be over, but a potential clash of titans is gearing up in the Chapter 9 bankruptcy case of Stockton, California . Municipal bond insurer National Public Finance Guarantee Corporation ("National") has challenged Stockton's... Read More

Detroit’s Proposed Plan of Adjustment – Two Crucial Questions
Posted on 25 Feb 2014 by Kelley Drye & Warren LLP

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... Read More

Cadwalader Clients & Friends Memo: Court Approves Extension of the Automatic Stay in Detroit’s Chapter 9 Case to State Officials
Posted on 29 Jul 2013 by Cadwalader, Wickersham & Taft LLP

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... Read More

Despite Earlier Ruling, Stockton Judge Confirms Plan Leaving Pension Obligations Intact
Posted on 7 Nov 2014 by Kelley Drye & Warren LLP

One month ago, Judge Christopher Klein ruled in the city of Stockton, CA bankruptcy case that public employee pension obligations can be impaired in municipal bankruptcy cases under Chapter 9 of the Bankruptcy Code. Last week, however, Judge Klein approved... Read More

White House: $311.33M Will Be Provided to Detroit to Assist Bankruptcy Recovery
Posted on 27 Sep 2013 by James Cordrey

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... Read More