Bankruptcy ‘Not An Option’ For Detroit Suburb: Mich.

Law360, New York (November 18, 2010, 1:34 PM EST) -- Michigan's Department of Treasury said Thursday that the Detroit suburb of Hamtramck, mired in a multimillion-dollar contract dispute with Detroit over tax payments tied to a General Motors Co. plant, would not be allowed under state law to file for bankruptcy.

"Bankruptcy is not an option for a municipality in Michigan," Treasury spokesman Caleb Buhs said Thursday, explaining that, under Michigan Public Act 72, the city would instead be required to enter into a status akin to receivership.

According to Michigan law, if Hamtramck declares a...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.