Detroit Bankruptcy Judge Blocks $165 Million Payment to BanksJanuary 16, 2014 – In The News
Michael Sweet was quoted in the CNN Money article "Detroit Bankruptcy Judge Blocks $165 Million Payment to Banks." While the full text can be found in the January 16, 2014, issue of CNN Money, a synopsis is noted below.
Judge Steven Rhodes has rejected a proposed settlement for $165 million between the city of Detroit and one of its creditors, despite the bankruptcy court’s mediator recommending the judge approve the deal to settle an agreement from 2009.
Bankruptcy attorney Michael Sweet said he was surprised by the judge’s decision, given the mediators’ recommendation to approve the deal.
"It sounds like what the judge is saying is you can put as much lipstick on the pig as you want, but it's still a pig," Sweet said.
"They're left with taking a much smaller share [of funds] as an unsecured creditor, or appealing at extraordinary cost and an uncertain outcome," he said.