debt service

Dec 282013
Chrysler Bankruptcy - only 29 cents to secured creditors

In the 2009 Chrysler bankruptcy, secured creditors, first in line for repayment, ultimately received 29 cents on the dollar.  This was still too much since the debt was trading for around 15 cents on the dollar.  Jones Day, including Kevyn Orr, represented Chrysler in the bankruptcy. For details, see Chrysler: Grand theft auto – Bankruptcy […]

Dec 232013
CNN Opinion: What Bled Detroit Dry? It’s Not Pensions

by Diane Bukowski, Voice of Detroit, Dec. 21, 2013 Stripping Detroit’s workers of their modest pensions will kill middle class Most pensions are $19,000 year; $30,000 a year for police and firefighters Culprits are sky-high financial costs, corporate subsidies, tax loopholes Detroit bankruptcy caused by same dynamics creating inequality in the nation Ross Eisenbrey By […]

Dec 222013
Detroit Barclays Deal Should Be Thrown Out by Bankruptcy Court

By Abayomi Azikiwe Editor, Pan-African News Wire This is one of the most outrageous deals involved in the Detroit economic crisis. Why should tax dollars from income and casino revenue be pledged to pay Bank of America and UBS, two crooked financial institutions that have done nothing but create blight and misery for the people […]

Dec 102013
Judge Rhodes' Ruling on the Detroit Bankruptcy Sets a Terrible Precedent

By Wallace Turbeville, Demos, Dec. 3, 2013 The inescapable inference is that the political leaders of the state have used the bankruptcy laws to get leverage to affect their desired policies. In other words, the bankruptcy was “fixed.” Today, bankruptcy judge Steven Rhodes ruled that the criteria for the bankruptcy proceeding for the City of […]

Nov 232013
The Detroit Bankruptcy

by Wallace Turberville, Demos, November 20, 2013 The City of Detroit’s bankruptcy was driven by a severe decline in revenues (and, importantly, not an increase in obligations to fund pensions). Depopulation and long-term unemployment caused Detroit’s property and income tax revenues to plummet. The state of Michigan exacerbated the problems by slashing revenue it shared […]

Nov 202013
Judge says no to secret fees in Detroit bankruptcy

by Kris Hamel, Workers World, November 18, 2013 In the struggle to stop the racist bankruptcy and emergency management imposed by the big banks on the city of Detroit, pickets chanted outside the downtown headquarters of Bank of America at lunchtime on Nov. 12. They targeted the financial giant because of its role — along […]

Nov 182013
Detroit bankruptcy means people versus banks

By Abayomi Azikiwe, Workers World, November 17, 2013 Federal Bankruptcy Judge Stephen Rhodes heard closing arguments Nov. 8 in the eligibility trial for what could be the largest municipal bankruptcy in U.S. history. The city of Detroit, represented by Jones Day — the law firm of the city’s state-imposed Emergency Manager, Kevyn Orr — attempted […]

Oct 202013

download leaflet The Detroit city council has a crucially important decision to make: Accept the proposed $350 million Debtor in Possession (DIP) deal with Barclays Capital to pay off the termination fees on swaps with Bank of America and UBS, or reject the deal and offer a counter proposal. We urge the council to reject […]