Ch. 9 Still Uncertain For Plagued Detroit Schools

Law360, New York (August 13, 2009, 8:58 PM EDT) -- With Detroit’s school district mulling municipal bankruptcy as a way to tackle a runaway deficit, officials for the district reportedly maintain that evidence of rampant corruption in the public school system will not affect a possible Chapter 9 filing.

The Motor City’s public school district is buckling under a $260 million deficit, and while the appointment of an emergency financial manager has combated waste and exposed embezzlers, a bankruptcy filing remains neither more nor less inevitable than before, Reuters reported.

On Wednesday, a deepening corruption investigation...
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