Thu, Oct 30, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Distressed debt funds look at Detroit, Miami for opportunities

Wednesday, July 24, 2013

Bailey McCann, Opalesque New York:

Detroit, Michigan is 312 years old. A quick scan of birthday etiquette rules on what to get for such an age won’t yield much, but I’m betting Emily Post wouldn’t have recommended bankruptcy. Yet, that’s exactly what the city will be getting for its birthday this year. Detroit made history when it filed for the largest municipal bankruptcy so far, at the tail end of last week, and that filing was only the opening volley in what will likely be a long protracted battle for the future of the Motor City.

This morning, the first bankruptcy related court hearing is set to start at 10 a.m. Judge Steven Rhodes will hear arguments on lawsuits that were filed against the city before the bankruptcy claim was filed and whether those cases can move forward. Basically what’s happening is this – under Chapter 9 bankruptcy – the type of bankruptcy filed by emergency manager Kevyn Orr, the city may be eligible for a stay on pending litigation, forcing those plaintiffs to fight it out in bankruptcy court. However, the courts have to allow the bankruptcy to move forward, first.

That hearing won’t come up for a few weeks, but today’s arguments are part of a broader issue – whether Detroit can file at all. Currently, there are federal and state objections to the filing, and pensioners who are expected to take some of the biggest haircuts in any deal, are arguing that the filing violates the state constitution.

"I think it is too soon to......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Macks aim to raise $750m for real estate debt fund[more]

    From Therealdeal.com: Father-son duo William and Richard Mack and former Blackstone Group managing director Peter Sotoloff are starting a new real estate debt fund. Together, the trio hopes to raise more than $750 million for the private equity fund, according to the Wall Street Journal. The fund wi

  2. Manager Profile - Seth Klarman: Lessons for retail and institutional investors[more]

    From Valuewalk.com: Seth Klarman is virtually unknown outside value circles, despite his impressive record and value of assets under management. On average Baupost has returned 19% p.a. despite holding a large portion of its assets in cash. During the financial crisis, Seth Klarman’s funds lost some

  3. North America - FATCA leads 75% of U.S. expats to consider dropping citizenship[more]

    From International-adviser.com: Nearly three quarters of American expats are considering the renouncement of their citizenship following July’s introduction of the “absurd” Foreign Account Tax Compliance Act (FATCA). The findings, which were revealed in a survey by deVere, come alongside the news th

  4. Hedge funds fell 1.18% in September on Fed tightening and ECB loosening[more]

    Komfie Manalo, Opalesque Asia: Hedge funds fell 1.18% in September on Fed tightening and loosening of the European Central Bank’s policy on equity markets, according to the Barclay Hedge Fund Index co

  5. New app allows asset managers easy interaction with portfolios, securities, holdings, transaction details[more]

    Komfie Manalo, Opalesque Asia: Global financial services software company SS&C Technologies Holdings has launched Explorer, a powerful data visualization and analysis tool that turns critical investment data into meaningful information. Explore