Monday, May 12, 2014

Is Detroit's art-for-pensions deal illegal? (UPDATED)

UPenn bankruptcy professor David Skeel says the answer is yes.

Meanwhile, one observer says "the city will probably end up back in Chapter 9 because they aren't fixing anything."

UPDATE:  Mark Stryker wrote about this in the Detroit Free Press last month.  Bottom line, as he put it on Twitter this morning, is that "other bankruptcy experts disagree w/ Skeel" (though he added:  "That said, Skeel's view will be heart of bond insurers courtroom arguments. Big questions for Judge Rhodes").