Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Detroit Businesses See Bankruptcy as Opportunity for 'Stability'
Author: Joel R. Glucksman
Date: August 1, 2013
Key Contacts
Back
When cities file for municipal bankruptcy protection, public works projects, civil servants, and public institutions typically suffer. In the case of the most recent historic filing, many Detroit businesses see it as an opportunity to gain more traction in an economy that has been unpredictable and sluggish for the last several years.
Sandy Baruah, head of the Detroit Regional Chamber, told Michigan Radio that although the bankruptcy filing was not a surprise for local business owners, most entrepreneurs are taking an optimistic view of the filing as a chance to bring more stability to the business economy and start the recovery process. Baruah noted that the city’s financial struggles over the last several years have hindered Detroit’s ability to attract investors. Accordingly, formal bankruptcy proceedings may lend some certainty and strength to the city’s economy over time, which may assuage investors’ fears about the future.
“Detroit is not unique,” Baruah told the radio station. “Great American cities like New York, Pittsburgh have all gone through some form of bankruptcy/receivership. And all of those cities look back on the time as kind of the defining point that put their cities on a much more sustainable path. All three of those cities are now vibrant, urban centers.”
Not all enterprises share these sentiments, however. Recently, the Detroit Institute of Art was required by Emergency Manager Kevyn Orr to provide its inventory as part of the valuation process. The artwork is currently valued at more than $1 billion, according to CNBC. Although there has been little talk of potentially selling some of the prized artwork to alleviate a portion of the city’s $18 billion in debt, cultural supporters and museum groups are concerned that it may become an option.
Following the city’s formal bankruptcy announcement, the institution noted its disappointment in Detroit’s decision to seek protection and reiterated that the “collection is in trust for the public and we stand by our charge to preserve and protect the cultural heritage of all Michigan residents.”
- Business Bankruptcy
- chapter 9 Municipal Bankruptcy
- Detroit
- Detroit Bankruptcy
- Filing Bankruptcy
- Municipal Bankruptcy
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
Author: Dan Brecher
What Founders Can Learn From Start-up Suits
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Author: Dan Brecher
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
Author: Ken Hollenbeck
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights
Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
Author: Robert E. Levy
Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities
Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]
Author: Dan Brecher
Why Compliance Monitoring Matters for NY and NJ Businesses
Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.