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Expert Analysis

Detroit Will Shape Muni Debt Market For Years To Come

Law360, New York (January 7, 2014, 9:48 AM EST) -- On Dec. 5, 2013, Judge Steven Rhodes of the U.S. Bankruptcy Court for the Eastern District of Michigan held that the city of Detroit had satisfied the five expressly delineated eligibility requirements for filing under Chapter 9 of the U.S. Bankruptcy Code[1] and so could proceed with its bankruptcy case. The court also found that the city had filed its bankruptcy petition in good faith, going so far as to hold that the city should not have been required to engage in prepetition negotiations with creditors when any such negotiations were doomed to fail from the start....

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