And we have a new city atop the list of Largest US Municipal Bankruptcies. Congratulations Detroit!

Chad Livengood @ChadLivengood
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BREAKING: Judge Steven Rhodes rules #Detroit is eligible for bankruptcy and the Chapter 9 case can proceed toward debt-cutting phase.


$18 BILLION in debt. One city.

U.S. Bankruptcy Judge Steven Rhodes determined the city meets the criteria for bankruptcy, ruling the city is financially insolvent and that the filing was properly authorized. He dismissed challenges to Michigan’s emergency manager law and ruled that pensions are not protected by the state Constitution.

“The case was filed in good faith and should not be dismissed,” Rhodes said.

Rhodes also ruled the city negotiated in good faith with its creditors, a key point of contention in the eligibility fight. The judge was sympathetic to creditors’ complaints that they did not get a reasonable chance to respond to the city’s proposals, but he noted that the sheer number of creditors — more than 100,000 — made it “impracticable” for Detroit to negotiate with them all.


Earlier the judge ruled that municipal worker pensions were not immune from the bankruptcy process. So it looks like the people who helped bleed the city dry with get to live with the results of their greed.

It takes awhile but eventually this is where Democratic rule leads.

Of course it's not just Detroit. No this is going to be the first in some mega-municipal bankruptcies across the country.

http://minx.cc/?post=345409

Zitat

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So it looks like the people who helped bleed the city dry with get to live with the results of their greed.

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Don't panic. These Union slugs are currently judge shopping to put a stop to this in court as we speak. The fun part though is this judge didn't halt the proceedings while the Unions try to stop this.