
Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Author: Joel R. Glucksman
Date: September 20, 2013
Partner
201-896-7095 jglucksman@sh-law.comLocal and state governments, as well as the federal government, are not the only ones closely watching Detroit’s municipal bankruptcy proceedings. It appears that Detroit, which recently filed the largest municipal bankruptcy in U.S. history, has also garnered the attention of global investors who are making determinations about future investments into the struggling city. China, in particular, is closely monitoring proceedings, and Michigan Gov. Rick Snyder has been particularly vocal about the benefits that the city’s bankruptcy may provide.
Snyder held a meeting with several Chinese journalists in Shanghai this week, and tried to alleviate any negative perceptions of the city that may jeopardize future Chinese investment. He plans to hold another meeting with journalists in Beijing in the coming days, in order to push the same positive message. In fact, the Michigan Economic Development Corp. established a three-minute video with Chinese captions promoting the state and the city of Detroit as a place to visit and invest, according to Michigan Live.
“Detroit is already coming back,” said Snyder, according to the Wall Street Journal. “We have great value opportunities for investment.”
However, Detroit may represent a tough sell for Snyder, who faced some pointed and specific questions about Detroit’s unemployment and financial standing, as well as the steps it plans to take if the bankruptcy judge rules that the city is ineligible to seek protection under Chapter 9 of the bankruptcy law. Journalists also expressed skepticism about the city’s ability to generate sufficient revenue and to diversify its economy outside of its traditional automotive sector.
However, some journalists also noted that Snyder’s remarks may have had a positive impact on Chinese investors’ understanding and sentiments about the city, which may eventually lead to more investment.
“I believe some people who do not know the real (meaning) of bankruptcy will guess it is not a good thing while some who know the bankruptcy and takeover clearly will think it is not negative,” reporter Qi Miao said in an email to Michigan Live. “It could be a new start and bring lots of chances, especially for the investment. The businessmen in China who are the potential investors will also have the positive views for Detroit if they learn all the things.”
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
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.
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!