Detroit Bankruptcy Case Turns on Issue of Good FaithNovember 8, 2013 – In The News
Michael Sweet was quoted in The New York Times article "Detroit Bankruptcy Case Turns on Issue of Good Faith." While the full text can be found in the November 8, 2013, issue of The New York Times, a synopsis is noted below.
The Detroit bankruptcy trial ended after nine days of testimony that raised questions about whether the city is insolvent and whether city officials gave creditors a fair chance to negotiate their debts before filing for Chapter 9 protection.
Attorneys said opponents of the bankruptcy were fighting an uphill battle on the insolvency issue. But it is less clear whether the filing met standards for good-faith negotiations.
“The evidence appears convincing that Detroit is insolvent,” said Michael Sweet.
But he said the lack of good-faith negotiations could cause the judge to deny eligibility. “Those factors are where the city has its greatest vulnerability,” Sweet said.