Friday, July 26, 2013

Analysis: Detroit set to beat bad-faith charge over bankruptcy

Reuters reports:
Meetings without the chance for any back and forth, unreturned phone calls and brusque tactics. To opponents of Detroit's bankruptcy filing, Emergency Manager Kevyn Orr has utterly failed to negotiate with them. But retired city workers, who are fighting to stop their pensions from being cut, and hope to stop Detroit's bankruptcy by claiming in court that Orr didn't engage in good-faith negotiations, are likely out of luck.
There's more:
Under a change to Chapter 9 bankruptcy law that was made while New York was in difficulties in the 1970s, municipalities can instead argue that good-faith negotiations are impractical. Detroit has made this argument.
The struggles of Blue America.