Detroit is Out of Bankruptcy. Now Comes the Hard PartNovember 7, 2014 – In The News
Michael Sweet was quoted in the New Republic article, “Detroit is Out of Bankruptcy. Now Comes the Hard Part.” Full text can be found in the November 7, 2014, issue, but a synopsis is below.
Detroit has moved one step closer to financial solvency after a judge approved the city’s exit plan to drop $7 billion in debt.
Compared to other cities that have recently gone bankrupt, Detroit could be considered lucky. Vallejo, California exited bankruptcy in 2011 and is on the brink of financial collapse again due to projections about its expected costs and revenues that ended up being wrong, explained Fox attorney, Michael Sweet.
Detroit’s status as the biggest city in the America to go bankrupt may be embarrassing, but the title also came with the perks of an art museum and deep-pocketed supporters. “The stars aligned,” Sweet said. “No other city will be like Detroit.”