Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
The City Of Detroit Emerges From Bankruptcy
Author: Joel R. Glucksman
Date: December 18, 2014
Key Contacts
Back
The city of Detroit emerged from bankruptcy on Dec. 10, closing a painful chapter in its history and opening the door to a potentially brighter future.
Detroit marked the largest municipal bankruptcy in American history, according to The New York Times. Its historic bankruptcy filing lasted a total of 17 months – relatively short compared to similar filings. Despite the good news, public officials noted that there is a lot of work ahead of them and the city’s residents.
“How do you deliver service in a city where the unemployment rate is double the state average, and we’ve got to rebuild a water system and a bus system and a computer system and a financial system?” said Mayor Mike Duggan on Dec. 10, according to the news source. “It’s all going to be a challenge.”
Elected almost a year ago, despite control of the city remaining with Emergency Manager Kevyn Orr, Duggan spoke about a fresh start as of tomorrow, the Times reported. He said that he and other officials would do the best they could to deliver on the services that Detroit’s residents deserve. The city’s plan of reorganization, which is allowing it to shed $7 billion of its debt and commit $1.7 billion to investing in city services, gives Detroit the tools it needs to have a chance at success, according to Duggan.
Orr addressed the media as well, calling his departure bittersweet, according to The Detroit News. He noted that, officially, the city will be out of bankruptcy at midnight. While some mediation regarding bankruptcy legal fees will continue on, it will not affect the city’s exit.
“It’s important for me to step back and return the city to the regular order,” Orr said, according to the news source.
As a bankruptcy and creditors right’s attorney, I’ve had a keen eye Detroit’s bankruptcy; from its inception, to its lowest points, I’ve covered the entire story. You can get the full scoop from some of my previous blog posts on Detroit’s Bankruptcy.
- Bankruptcy Protection
- Detroit
- Detroit Bankruptcy
- Filing Bankruptcy
- Municipal Bankruptcy
- Scarinci Hollenbeck
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business
- 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
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
When Are New Jersey Business Owners Personally Liable for Corporate Debt?
New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]
Author: Charles H. Friedrich
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.