Who doesn’t love it when a plan starts to come together? Detroit’s economic recovery may not be a wish upon a star anymore, especially if private businesses and charity groups continue to come together to support the ailing city. Reuters reports there is a new player in the game- JPMorgan Chase and Co. According to recent reports issued yesterday, the mega bank has agreed to provide the city with $100 million over five years to stimulate economic growth and development.
Reuters reports the city of Detroit may have a key ally as a group of Detroit’s retired workers reach a preliminary agreement with the city over pensions and healthcare. This most recent agreement is in addition to other agreements which have been reached earlier this month and incorporated into a revised debt adjustment plan the city filed with the court late on Friday.
The Associated Press reported yesterday that Detroit, who has filed the largest municipal bankruptcy filing in the history of the United States, has submitted an updated repayment plan to the federal court. The repayment plan reveals new details on the actions the city will take, to not only restore public services, but also how they plan to restructure their debts.
Reuters reports Detroit is one step closer to financial recovery. In a court filing issued on Thursday, Detroit announced they have reached an agreement with Barclays PLC. Under the agreement, they would be loaned up to $120 million which will be used to invest in services.
Although Kevyn Orr, Detroit’s state-appointed city manager, has been feverishly working with city officials to complete the Detroit bankruptcy repayment plan which outlines how Detroit will repay or renegotiate the estimated $18 billion in debt and exit bankruptcy financially viable, a United States Court on Friday has stated they will hear appeals of seven groups of petitioners in the Detroit bankruptcy case. At question will be whether Detroit is actually eligible for bankruptcy.
Detroit has released its debt repayment plan to its creditors reaching one of the major steps to complete their bankruptcy and emerge from the largest municipal bankruptcy in the history of the United States. The plan, which was given confidentially to creditors on Wednesday, provides detailed information about how the city plans to repay hundreds of creditors and emerge financially stable after bankruptcy.
According to The Detroit news, a “U.S. bankruptcy judge will determine Thursday, January 16, whether Detroit will be able to pay two banks $165 million to terminate a troubled pension debt deal blamed for pushing the city into bankruptcy.”
Detroit, the Motor City, the largest city in America to ever declare bankruptcy has a new Mayor. Detroit Mayor Mike Duggan, the forever optimist has declared that if the people of Detroit agree to stay and stop the population flight, which has plagued the city over the last several decades, he promises to turn things around within six months.
Art, which is seen by some to be priceless, might in fact have a price. Regardless of what the art and museum lovers believe, at some point it may be time to put a price tag on cultural resources and decide whether or not they should be sold. For instance, the art collection in Detroit is comprised of 1,741 pieces of art, now estimated at $454 million to $867 million. Some of which were bought with city funds. Funds that the city may have needed to pay police officers, fix city lights and pay employees.
CNN reports that U.S. Bankruptcy Judge Steven Rhodes has agreed to ask the U.S. 6th Circuit Court of Appeals to review Detroit’s bankruptcy case and rule on the Detroit appeal as quickly as possible. This decision was made just weeks after the judge decided Detroit could file bankruptcy after hearing arguments from city union lawyers, retirees and others.