How the bankruptcy in Detroit was resolved through mediation -

Judge Rhodes: Detroit’s problems were well known long before it filed bankruptcy in July 2013. Because it was insolvent, its municipal services were inadequate and its government was under state control. Its residents and its business were suffering from outrageous response times for police, fire and emergency medical services, a failed street lighting system, widespread blight, unreliable public transportation, growing legacy obligations and a shrinking tax base.

These problems could only worsen with time. Time was therefore the enemy. Detroit’s fresh start would depend on the prompt confirmation of a feasible plan. Originally, my goal was to confirm a plan — a plan that would restore adequate city services — within one year after the bankruptcy filing.

Originally published in Michigan Lawyers Weekly on May 8, 2017.