Lessons Learned from Detroit's Bankruptcy
In this article published by MuniNet Guide, Jim Spiotto outlines eight lessons learned from Detroit's historic Chapter 9 bankruptcy:
- Do not defer funding of essential services and infrastructure.
- Labor and pension contracts under state constitutional and statutory provisions should not be interpreted as a suicide pact.
- Don't question that which should be beyond questioning and is needed for the long-term financial survival of the municipality.
- Debt adjustment is a process, but a recovery plan is a solution.
- Successful plans of debt adjustment have one common feature: virtually all significant issues have been settled and resolved with major creditors.
- One size does not fit all.
- A recovery plan must provide for essential services and infrastructure.
- Confirmation of a plan of debt adjustment is only the beginning of the journey to financial recovery—not the end.
Click here to read the full article on MuniNet Guide.