Harvey Miller: Detroit Will Be In Bankruptcy 'For A Long Time' July 24 (Bloomberg Law) -- Harvey Miller, partner at Weil, Gotshal & Manges, tells Bloomberg Law's Lee Pacchia that Detroit's recently filed Chapter 9 bankruptcy case will not be an easy restructuring. In addition to the profound economic challenges facing the city and the limited ability of a bankruptcy court to force changes on its government, the fundamental tension between bondholders, pensioners and taxpayers could mean Detroit will remain in tangled up in litigation for a long duration of time. "There's going to be a lot of legal fighting in this," he says.
"All bets are off in bankruptcy court because you cannot tax a hollow shell. And what is Detroit but a hollow shell? Triumph of Math Over Unions - As for pension claims and the Michigan constitution? Same thing: You cannot pay what you do not have. This is the triumph of math and common sense over union greed, arrogance, threats, and coercion. Future Rating Impact - The Bond Buyer says Detroit Filing Could Impact Future Rating Analysis Read more at http://globaleconomicanalysis.blogspot.com/2013/07/general-obligation-bondholders-beware.html#CrO4StlYPUD5vgOl.99 "
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