Detroit Lawyer Closes Bankruptcy Trial: ‘The City Needs All the Help It Can Get’October 27, 2014 – In The News
Michael A. Sweet was quoted in The Guardian article, “Detroit Lawyer Closes Bankruptcy Trial: 'The City Needs All the Help It Can Get.'” Full text can be found in the October 27, 2014, issue, but a synopsis is below.
An attorney for the city of Detroit told judge Steven Rhodes that the city’s survival depended on the approval of a plan that would help fix decades of irresponsible city management, a declining economy and systematic population loss.
The city has reached deals with most of its major creditors, including a few who initially held out.
According the Michael Sweet, it’s likely that creditors agreed to last minute deals because they realized it was the best they would get.
“They’re getting certainty and certainty goes a long way in the financial markets and certainty goes a long way for folks looking at the long horizon,” Sweet said. “They also don’t have to worry about further uncertainty when it comes to the cost of litigation.”