j***o
发帖数: 2842 | 1 今天的华尔街日报
Reckoning Nears for Detroit
Emergency City Manager to Call Meeting That May Be Precursor to Bankruptcy
By MATTHEW DOLAN
DETROIT—Detroit's emergency manager plans to call unions and creditors to a
meeting in mid-June amid signs he is laying the groundwork to take the city
into bankruptcy within a matter of months.
Kevyn Orr, appointed by Michigan Gov. Rick Snyder in March to take control
of the long-struggling city, plans to use the meeting to present a detailed
restructuring plan for Detroit's liabilities, which he says total about $17
billion.
Detroit Assets Under Fire
See some of the assets owned by the city that could be at risk in a
bankruptcy filing.
View Slideshow
[SB10001424127887324063304578523431492210060]
Tom Szczerbowski/Getty Images
Over the coming weeks, Mr. Orr is expected to ask the city's largest unions,
pension funds, creditors and bondholders for concessions. It is unclear
whether such moves could stave off bankruptcy—or pave the way for it by
serving as a template for a court-supervised reorganization.
A bankruptcy filing likely would be the largest ever by a U.S. municipality
in terms of debt outstanding, surpassing that of Jefferson County, Ala. It
would follow a decades-long decline of the onetime industrial power, whose
population fell 25% from 2000 to 2010 to about 700,000, according to the
Census Bureau. In 1950, Detroit crested at nearly two million people.
Stymied by a flight of residents and businesses to the suburbs, reductions
in state aid and a crash in real-estate values, Detroit borrowed heavily to
meet operating costs and payments on long-term liabilities, including
pensions and health care for retired city workers.
On average, since 2008, Detroit has spent $100 million more a year than it
collected in taxes and other revenue.
In March, Mr. Snyder appointed Mr. Orr, who has the power under state law to
run the city, break union contracts and sell city assets. Last month, one-
term Mayor Dave Bing announced he wouldn't run for re-election along with a
majority of City Council members.
On June 15, the city is due to make a debt payment estimated at more than $
30 million, according to a person familiar with the matter. It is possible
Mr. Orr will decide not to make the payment to conserve cash, this person
said.
Mr. Orr confirmed in an interview that a debt payment is coming, but
declined to comment on its amount or whether the city intended to pay.
Detroit had $64 million cash on hand in April but owed $226 million in
payments on pensions and other obligations, forcing the city to delay paying
its bills to stay afloat, Mr. Orr wrote in a report last month.
In an interview late last week, Mr. Orr said he planned to call the meeting
with creditors this month to "at least attempt to have a mature and sober
discussion" outside of bankruptcy court about the city's dire financial
straits and the need for better repayment terms on its debt. Mr. Orr pegged
the chances of success outside court at 50-50.
Mr. Orr said he sent a letter to the city's unions last week seeking talks
over concessions and several unions said they are willing to come to the
table.
"The question of bankruptcy isn't entirely up to me," Mr. Orr said, adding
the city may avoid the move if two or three big creditors agree to better
terms on their debt.
Union representatives criticized city leaders for failing to implement cost-
saving reforms. Some dismiss the idea that Mr. Orr might push Detroit into
bankruptcy.
"I think it's a scare tactic," said Ed McNeil, assistant to American
Federation of State, County and Municipal Employees Council 25 President Al
Garrett, the city's largest union for municipal workers. "It's been
something like six times that the city was going to go bankrupt. But it
never happened and they never had a payless payday."
Creditors have largely remained mum, waiting to see Mr. Orr's plan. At least
two representatives for creditors approached him after a recent speech in
New York, saying they were ready to talk, said a person familiar with the
matter.
Lyle Fitterer, managing director at Wells Capital Management, which owns
Detroit water and sewer bonds, said Monday "it will be very hard to get all
the parties to come to an agreement" to avoid bankruptcy. He said any
restructuring plan Mr. Orr lays out to unions, bondholders and others
ultimately could serve as a "prepackaged bankruptcy" to be presented to a
judge.
Up to now, Gov. Snyder and Detroit elected officials have said they want to
avoid using bankruptcy to clean up the city's mess. But in recent days,
their positions have softened.
Mr. Snyder would have the final say on a filing. He said his concerns about
using the Chapter 9 municipal bankruptcy process could be reduced if Mr. Orr
crafts a road map to guide Detroit in and out of court in a matter of
months.
Mayor Bing said in an interview last week, "I don't want to go to bankruptcy
, but I do know that it is a strong possibility."
"It's not like something that would drag on for years," said Mr. Snyder, who
stressed that he hopes the city can still avoid bankruptcy.
Mr. Orr sharpened the debate about bankruptcy in late May when his office
confirmed he was evaluating the potential sale of prized city assets,
including the artwork at the Detroit Institute of Art, a collection
potentially worth billions.
But in the interview Friday, Mr. Orr said he was doing his due diligence to
assess the value of all city assets and had no plans to explore a sale of
the art institute collection.
—Kelly Nolan
contributed to this article. | M*****n
发帖数: 16729 | 2 破产的目的就是为了赖账
a
city
detailed
17
【在 j***o 的大作中提到】
: 今天的华尔街日报
: Reckoning Nears for Detroit
: Emergency City Manager to Call Meeting That May Be Precursor to Bankruptcy
: By MATTHEW DOLAN
: DETROIT—Detroit's emergency manager plans to call unions and creditors to a
: meeting in mid-June amid signs he is laying the groundwork to take the city
: into bankruptcy within a matter of months.
: Kevyn Orr, appointed by Michigan Gov. Rick Snyder in March to take control
: of the long-struggling city, plans to use the meeting to present a detailed
: restructuring plan for Detroit's liabilities, which he says total about $17
| s*******u
发帖数: 9508 | 3 能不能卖给中国,算中国的租界地?
a
city
detailed
17
【在 j***o 的大作中提到】
: 今天的华尔街日报
: Reckoning Nears for Detroit
: Emergency City Manager to Call Meeting That May Be Precursor to Bankruptcy
: By MATTHEW DOLAN
: DETROIT—Detroit's emergency manager plans to call unions and creditors to a
: meeting in mid-June amid signs he is laying the groundwork to take the city
: into bankruptcy within a matter of months.
: Kevyn Orr, appointed by Michigan Gov. Rick Snyder in March to take control
: of the long-struggling city, plans to use the meeting to present a detailed
: restructuring plan for Detroit's liabilities, which he says total about $17
| B**********r
发帖数: 7517 | | b***a
发帖数: 6422 | 5 说底特律烂，可是METRO还是很多人口。
a
city
detailed
17
【在 j***o 的大作中提到】
: 今天的华尔街日报
: Reckoning Nears for Detroit
: Emergency City Manager to Call Meeting That May Be Precursor to Bankruptcy
: By MATTHEW DOLAN
: DETROIT—Detroit's emergency manager plans to call unions and creditors to a
: meeting in mid-June amid signs he is laying the groundwork to take the city
: into bankruptcy within a matter of months.
: Kevyn Orr, appointed by Michigan Gov. Rick Snyder in March to take control
: of the long-struggling city, plans to use the meeting to present a detailed
: restructuring plan for Detroit's liabilities, which he says total about $17
| m*t
发帖数: 7490 | 6 有破产法官，你以为那么好赖的
赖账的前题是扒一层皮给有钱人
一帮普通公务员立马沦落成底层人士
【在 M*****n 的大作中提到】
: 破产的目的就是为了赖账
:
: a
: city
: detailed
: 17
| d****0
发帖数: 502 | 7 这种城市破产到底是啥结果? 看上去也没人跳楼自杀啊，都活的好好的。。 | c*w
发帖数: 4736 | |
|
