Today Judge Steven Rhodes will begin the process of setting a series of hearings and deadlines that will eventually decide whether Detroit can file for bankruptcy. This could take months...
• The status of Detroit's negotiations with creditors.
• Detroit's request for the approval of an agreement that would allow the city to capture a larger portion of casino tax revenue without placing one-third in a reserve account to protect its insurer.
• The city's request for a committee to represent retirees.
• The possible appointment of a mediator to help speed up negotiations between the city and creditors.
• A request for a fee examiner to monitor the money Detroit is paying its lawyers and financial advisers.
For weeks, The Daily Ticker's been talking to experts about Detroit and the potential fallout from an $18 billion-plus bankruptcy.
Meredith Whitney, founder of Meredith Whitney Advisory Group LLC, told us: “It will galvanize other municipalities to either get their act together or follow Detroit’s lead.”
Heidi Ewing, a Michigan native and co-director of “Detropia,” a documentary that gives an unvarnished look into Detroit’s political dysfunction and financial decay, expects the city to get worse before it gets better.
“Detroit is on its knees…people were thinking Detroit was already at the bottom... it’s very possible city services will be cut back even further. Those people who have chosen to stay in Detroit or couldn’t leave will bare the brunt of this bankruptcy.”
We'll continue to track the story.
In the meantime, watch the above video to see which companies and celebrities have faced financial catastrophe. Some have survived, some have even thrived.
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