Friday, July 19, 2013

As if Detroit Didn't Have Enough Problems: Add PR and Legal Issues to the List

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Long road: The move to restructure the debt is bound to set off months, if not years, of legal wrangling, asset sales and cuts to benefits for Detroit workers and retirees. WSJ

Public Relations: Detroit already endures the title as one of the most depressing and violence-prone cities in the nation and now bankruptcy?  What business is going to want to invest in relocation or start-up there?  This moniker will drag the already-struggling city down for decades to come.

Creditor battle: Detroit officials may decide to reach a settlement with general-obligation bondholders in order to clear the way for wider discussions with creditors who are owed much larger sums of money. WSJ

Hit list: Detroit filed thousands of bankruptcy documents late Thursday. One of the most important is a list of the city’s top 20 creditors.

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