Jun
14
2013

Bankruptcy endgame for Detroit?

Very possibly:

[Detroit Emergency Manager Kevyn] Orr on Friday sat down in a closed-door meeting with about 150 creditors, bond holders and unions to discuss the city’s fiscal situation, seeking concessions that would save Detroit millions of dollars in payments.

Perhaps the most dramatic aspect of his plan: Orr said, starting now, there will be a moratorium on debt payments for all unsecured funded debt. Creditors are being asked to take about 10 cents on the dollar of what’s owed them. Underfunded pension claims would get less.

This is my only comment – well, aside from the one where I note that Detroit should take another look at that zombie plan that I suggested a while back – but it’s a doozy: those underfunded claims that I bolded, if I am reading this correctly, represent 3.5 billion dollars’ worth of debt.  The Emergency Manager is stating outright that at least 3 billion of that is going to be defaulted on.  Now, I am a rank amateur at many aspects of public policy and all that, but I suspect that this will end up having adverse effects on the local economy, no?

I’m telling you, again: it’s already post-apocalypse, over there.  They might as well just admit it.

Via Drudge.

3 Comments

  • Catseyes says:

    Yes, yes it is the coyotes are already in Detroit and once the feral pigs get in they’ll never get them out. And well I’m figuring on getting a heavy crossbow.

  • acat says:

    I wonder if Michigan could make a buck here ..
    .
    Declare a ring, say from the core out to 8-mile, so 16-mile diameter, to be a new State Park. (note – I am not from Detroit, this is simply a guesstimate of where a ring would make sense, I am open to suggestions)
    .
    Move everyone – by force if needed – out of the ring.
    .
    Build a Berlin-wall-style .. wall .. around the edge, with a handful of guard portals similar to the old Checkpoint Charlie.
    .
    Promote it as a “new kind of state park”, with “urban exploration” as the main activity…
    .
    Mew

  • BigGator5 says:

    My Zombie Plan:
    .
    Zombies |Reality| Me

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