The Corner

Judge: Detroit Can Go Through With Chapter 9 Bankruptcy

Detroit can dump billions of dollars worth of debt in the largest municipal bankruptcy in U.S. history, a federal judge ruled today.

Judge Steven Rhodes said that the city met federal conditions to stay in bankruptcy court to untangle its $18 billion in liabilities. “This once proud and prosperous city can’t pay its debts. It’s insolvent. It’s eligible for bankruptcy,” Rhodes said.

Before the city filed for bankruptcy in July, almost 40 cents on every dollar went to paying off debt; the city claims that without restructuring that figure could rise to 65 cents on the dollar.

Rhodes ruled that Michigan’s constitutional protections for public pensions, which dictate that they “shall not be diminished or impaired,” did not completely bar doing so in a bankruptcy. Pensions, he ruled, could be cut like any other contract, though he warned that he wouldn’t automatically approve any pension cuts the city puts forth.

A large portion of the bankruptcy hearings dealt with whether the city had negotiated in good-faith with its creditors before it filed for bankruptcy. Unions and pension funds contended that the city and its emergency manager, bankruptcy lawyer Kevyn Orr,  did not conduct such talks.

Minutes after the ruling, Sharon Levine, attorney for the American Federation of State, County and Municipal Employees, the city’s largest union, pledged to appeal the decision.

Most Popular

Law & the Courts

The NLRB’s Humorless Insensibility

The text of the National Labor Relations Act does not, so far as we can tell, require the National Labor Relations Board or its personnel to have their sense of humor surgically removed. Nor does it prohibit the NLRB’s judicial proceedings from considering context, common sense, or elementary reality in making ... Read More
Law & the Courts

The NLRB’s Humorless Insensibility

The text of the National Labor Relations Act does not, so far as we can tell, require the National Labor Relations Board or its personnel to have their sense of humor surgically removed. Nor does it prohibit the NLRB’s judicial proceedings from considering context, common sense, or elementary reality in making ... Read More

If You Like Your Police, You Can Keep Your Police

The most amusing thing about the Obama v. the Squad kerfuffle is that there is not actually an inch of substantive daylight between the supposed combatants. Former President Obama does not disagree with the sentiments or objectives of Ilhan Omar et al. He disagrees with their tactic of pursuing it through a ... Read More

If You Like Your Police, You Can Keep Your Police

The most amusing thing about the Obama v. the Squad kerfuffle is that there is not actually an inch of substantive daylight between the supposed combatants. Former President Obama does not disagree with the sentiments or objectives of Ilhan Omar et al. He disagrees with their tactic of pursuing it through a ... Read More
Film & TV

Wonder Drug Cures All Problems

I’ve just discovered a film that has changed my life. Give it a chance, and it’ll change yours, too. The film is Another Round, by the sly Dane Thomas Vinterberg (The Celebration), and it heralds the discovery of a miraculous substance by four friends, all of them high-school teachers in Denmark, on the ... Read More
Film & TV

Wonder Drug Cures All Problems

I’ve just discovered a film that has changed my life. Give it a chance, and it’ll change yours, too. The film is Another Round, by the sly Dane Thomas Vinterberg (The Celebration), and it heralds the discovery of a miraculous substance by four friends, all of them high-school teachers in Denmark, on the ... Read More
Economy & Business

NASDAQ against Shareholder Rights

The function of a stock exchange is to provide an orderly market for the trading of securities. As part of that, a stock exchange will generally insist that a listed company will agree to meet certain financial disclosure requirements designed to ensure that investors have sufficient information with which to ... Read More
Economy & Business

NASDAQ against Shareholder Rights

The function of a stock exchange is to provide an orderly market for the trading of securities. As part of that, a stock exchange will generally insist that a listed company will agree to meet certain financial disclosure requirements designed to ensure that investors have sufficient information with which to ... Read More

Watching Les Watchmen

The best science fiction — and some of the most terrifying science fiction — has a short literary shelf life, because it does not stay fiction for long. In the much-admired HBO series Watchmen, which is set not in a dystopian future but in a reimagined present, the police have begun wearing masks in order to ... Read More

Watching Les Watchmen

The best science fiction — and some of the most terrifying science fiction — has a short literary shelf life, because it does not stay fiction for long. In the much-admired HBO series Watchmen, which is set not in a dystopian future but in a reimagined present, the police have begun wearing masks in order to ... Read More