Michigan Governor Rick Snyder has postponed his decision to
appoint an emergency manager to deal with Detroit's fiscal crisis.
He was expected to act after a state audit last month found that
the city's long-term debt was $12 billion, $2 billion more than
previously reported. But the delay won't postpone Detroit's
inevitable date with insolvency.
The main issue that Snyder, a Republican, will ultimately have to confront is whether to put Detroit through a managed bankruptcy, which would be legally less nettlesome but require his maximal involvement, or a conventional Chapter 9 court process that will be legally arduous but would minimize his role.
He should opt for the latter.
Read more: http://reason.com/archives/2013/01/15/let-courts-handle-detroits-inevtiable-ba
The main issue that Snyder, a Republican, will ultimately have to confront is whether to put Detroit through a managed bankruptcy, which would be legally less nettlesome but require his maximal involvement, or a conventional Chapter 9 court process that will be legally arduous but would minimize his role.
He should opt for the latter.
Read more: http://reason.com/archives/2013/01/15/let-courts-handle-detroits-inevtiable-ba
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