November 9, 2013 |
DETROIT - Sheilah Johnson was a building inspector for the city for 28 years, a college graduate who passed up jobs that paid more because a city job offered stability and the promise of a good pension. But the city's recent plunge into bankruptcy - overseen by an outside emergency manager answerable to the state government, not the citizens of Detroit - makes her wonder whether she and other African American residents of the impoverished city will be able to stop Wall Street creditors from seizing what's left of a municipal treasury they paid into for most of their lives.
November 6, 2013 |
Residents of Stockton approved a sales-tax increase that officials say will help the city emerge from bankruptcy. The city of about 300,000 filed for Chapter 9 protection in July 2012, at the time the largest U.S. city to do so. Stockton was later surpassed by Detroit, which filed bankruptcy in July. Voters on Tuesday agreed to raise the sales tax in the city by 3/4 of a percent, to 9%. The tax hike, which will take effect April 1, is expected to raise about $280 million in 10 years.
October 31, 2013 |
SAO PAULO, Brazil - A little over a year ago, Brazilian playboy Eike Batista was reputed to be the seventh-richest man in the world and was in the habit of boasting loudly that he'd soon be No. 1. By this week, he had become one of the world's biggest paupers. On Wednesday, his flagship oil company, OGX, filed for bankruptcy. A personal fortune once valued at $30 billion had collapsed into a personal debt estimated at more than $800 million. Some Brazilians, long since soured on his cocky persona, responded with glee on social networks to the news that Batista's yacht, the Pink Fleet, would soon be sold for scrap.
October 28, 2013 |
DETROIT - As protesters marched outside, Michigan Gov. Rick Snyder testified in federal court Monday that he “worked very diligently” to avoid Detroit's historic bankruptcy as attorneys for employee unions and retirees grilled him on decision-making prior to the July filing. Snyder appeared on the fourth day of trial before Judge Steven Rhodes, who must determine whether the city and state officials - including the governor and his appointed emergency manager, Kevyn Orr - negotiated in good faith with creditors and did all that they could to avoid filing for Chapter 9 bankruptcy protection.
October 26, 2013 |
Detroit has once again been in the headlines as the city and its creditors battle in court over whether the city is eligible to receive bankruptcy protection. Municipal bankruptcy, like just about everything else that contains the word "municipal" or has anything to do with lawyers, is complicated. We checked in with Detroit lawyer Nathan Resnick, a municipal bankruptcy expert, and with his help we'll try to explain what an ongoing court hearing means, and where Detroit stands in its efforts to turn around its finances.
October 23, 2013 |
Detroit went into federal bankruptcy court on Monday hoping to prove what most people already know: It is poor and $18 billion in debt, its residents aren't getting adequate municipal services and there is no real way to rebound without some sort of judicial protection. But the question facing Judge Steven Rhodes, who is presiding over the nation's largest municipal bankruptcy case, is deeper than just the facts of financial peril. The jurist will be asked to decide whether city and state officials acted in good faith and did all that they could to avoid filing for Chapter 9 bankruptcy protection.