Detroit Files Chapter 9: What Lies Ahead?
Posted by Larry Doyle on July 19th, 2013 12:23 PM |
With no surprise to absolutely anybody, the City of Detroit filed bankruptcy yesterday via Chapter 9.
How does an entity such as Detroit get to the point of being 18 billion in debt? Well, I addressed that point a month ago in writing, Detroit: D is for Disaster.
There will be years worth of likely challenging negotiations and contested legal battles among Detroit’s creditors (primarily the pensioners and bondholders). Those within the municipal bond market and beyond will be watching this play out with bated breath. (more…)
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