Detroit Bankruptcy Media Round-Up

This is by no means complete but a collection of local and national media/press coverage.

Detroit Fire Fighters marched around the Federal Building chanting "Help Us, Help You" as U.S. Bankruptcy Judge Steven Rhodes heard from stakeholders inside.

Detroit Firefighters marched around the Federal Building chanting “Help Us, Help You” as U.S. Bankruptcy Judge Steven Rhodes heard from stakeholders inside.

BREAKING NEWS! – Bankruptcy birthed in Snyder’s office By A. Jones – “DETROIT — E-mails between Gov. Rick Snyder’s administration, Kevyn Orr and Jones Day law firm reveal the governor’s  early plan to take Detroit into bankruptcy before City Council approved any of the steps or the mayor made the choices public. The timeline also raises questions of Jones Day having an unfair advantage in the Request for Proposal (RFP) selection process.” Local Press: The Michigan Citizen

Cuts for retirees; tens of millions for consultants by T. Kelly and Z. Jeffries – “DETROIT — Emergency Manager Kevyn Orr stopped paying the city’s bills in early June, letting city debt grow. At the same time, he is paying his former law partners and consultants millions from an alleged cash-strapped city. To date, Orr — with the aid of six City Council members Charles Pugh, Gary Brown, Saunteel Jenkins, Kenneth Cockrel Jr., Andre Spivey and James Tate — has committed the city to spending $22 million for “restructuring” (see sidebar “Costs of restructuring”). For the first two weeks of work, Jones Day billed the city $498,949.21 for attorneys making up to $1,000 an hour. For work in the month of April, Orr paid Jones Day $870,779.91. Under bankruptcy, the fees are likely to rise.” Local Press: The Michigan Citizen

Primary election day looms as Detroit bankruptcy filing moves ahead Detroit’s Primary Election Day is Aug. 6; could be ‘most critical’ election ever while city goes through bankruptcy Author: Mara MacDonald, Local 4 Reporter – “DETROIT – As a federal bankruptcy judge puts challenges to Detroit’s Chapter 9 filing on ice — allowing the process to move ahead — Detroit voters will be heading to the polls, shortly. Primary Election Day is August 6. It’s a dynamic like nothing Detroit voters have ever seen: a city under the management of an emergency manager but with the hope of a speedy bankruptcy process. Whomever voters elect in the November general election will have to lead the city out of the bankruptcy process.” – Local NBC, Channel 4

Detroit Firefighters "Help Us, Save You!"

Detroit Firefighters “Help Us, Save You!”

Don’t buy the right-wing myth about Detroit Conservatives want you to think high taxes drove people away. The real truth is much worse for their radical agenda by – “In the wake of Detroit’s bankruptcy, you may be wondering: How could anyone be surprised that a city so tied to manufacturing faces crippling problems in an era that has seen such an intense public policy assault on domestic American manufacturing? You may also be wondering: How could Michigan officials possibly talk about cutting the average $19,000-a-year pension benefit for municipal workers while reaffirming their pledge of $283 million in taxpayer money to a professional hockey stadium? These are fair questions — and the answers to them can be found in the political mythology that distorts America’s economic policymaking.” Online, Salon.com

The roots of Detroit’s bankruptcy by Maya Wiley – “Detroit may be the first major U.S. city to file for bankruptcy, but it may not be the last. Nor did it come as a surprise. As Governor Snyder said on July 18th, this bankruptcy has been six decades in the making. Two interrelated realities explain Detroit’s empty coffers: race and disinvestment.” Online, The Grio

VIDEO: Judge freezes challenges to Detroit bankruptcy
Fox 2 News Headlines

Judge halts lawsuits seeking to block Detroit bankruptcy By: - “A federal bankruptcy judge on Wednesday suspended pending lawsuits in state courts that are challenging Detroit’s bankruptcy filing. U.S. Bankruptcy Judge Steven Rhodes said there is nothing in the 10th Amendment, which guides state vs. federal jurisdiction, that bars federal jurisdiction in this case. He said his court will be the exclusive venue for any legal action regarding the bankruptcy.” National, CNBC

Throughout the day organizations like the Moratorium Now! Coalition (moritorium-mi.org) gathered to protest the bankruptcy.

Throughout the day organizations like the Moratorium Now! Coalition (moritorium-mi.org) gathered to protest the bankruptcy.

Judge Stops Detroit Bankruptcy Lawsuits  By ED WHITE and JEFF KAROUB – “A federal judge agreed with Detroit on Wednesday and stopped any lawsuits challenging the city’s bankruptcy, declaring his courtroom the exclusive venue for legal action in the largest filing by a local government in U.S. history. The decision by U.S. Bankruptcy Judge Steven Rhodes was a major victory for Detroit, especially after an Ingham County judge last week said Gov. Rick Snyder ignored the Michigan Constitution and acted illegally in approving the Chapter 9 filing. That ruling and others had threatened to derail the case. Associated Press – ACB NEWS

Detroit bankruptcy case put into the fast lane by Daniel Howes – “Detroit –For a town whose political and labor leaders are accustomed to moving in first gear — if at all — U.S. Bankruptcy Judge Steven Rhodes is throwing into overdrive the largest municipal bankruptcy in American history. In an order Wednesday, he stayed all litigation against the city and ruled that bankruptcy court has jurisdiction to decide whether Detroit’s Chapter 9 filing violates the state constitution’s protections for vested pension benefits. The decision sets a crisp tone and signals that the Detroit traditions of denial, delay and circular politicking are poorly suited to a speedy process driven by a federal judge.” Local Press: The Detroit News

Photo cred: Daniel Mears, staff photographer The Detroit News

Detroiters Resisting Emergency Management’s “Democracy on Wheels Infobus” (http://www.facebook.com/DemocracyOnWheels) circled the federal building in support of the protestors until the road was blocked.

Judge: Detroit bankruptcy to proceed; city’s health at risk by Brent Snavely and Matt Helms – “DETROIT — Lawyers for Detroit won a clean sweep in federal court Wednesday that should allow the city’s bankruptcy filing to move forward in federal court without getting bogged down in lawsuits filed in state court. U.S. Bankruptcy Judge Steven Rhodes dealt back-to-back wins for emergency manager Kevyn Orr in rulings shortly after a two-hour hearing in a courthouse packed with about 175 lawyers, journalists, city workers and retirees. Local Press: Detroit Free Press

Judge in Detroit bankruptcy bid suspends challenges from proceedingA U.S. bankruptcy court judge on Wednesday suspended lawsuits challenging Detroit’s historic bankruptcy filing while he reviews the city’s petition for protection from creditors. Following the first hearing in the case earlier on Wednesday, Judge Steven Rhodes issued a stay on all litigation related to the bankruptcy. Rhodes also extended that stay to lawsuits filed against Michigan’s governor, state treasurer and Kevyn Orr, Detroit’s state-appointed emergency manager who filed the biggest Chapter 9 municipal bankruptcy petition in U.S. history for the city on July 18. Rhodes also declared that Orr is a valid officer for the city.” National Reuters, Chicago Tribune

Video – Bankruptcy Judge to Hear Detroit Bankruptcy Case, Blocking Pension Funds’ Move to Stop Filing By – “U.S. Bankruptcy Judge Steven Rhodes ruled that his federal court will hear Detroit’s bankruptcy case, creating an obstacle to the pensioners who challenged the constitutionality of last week’s historic $18 billion bankruptcy filing. Michael Nicholson, general counsel for the United Auto Workers, said the union will decide if it will appeal. Two city pension funds had an emergency hearing on Thursday, saying the state constitution protected the pension benefits. Judge Rhodes said questions about the city’s eligibility to overhaul itself through bankruptcy “are within this court’s exclusive jurisdiction.” A status conference is scheduled for Aug. 2 for further scheduling and to address the status of negotiations between the city and its creditors.” National ABC

 

 

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