Thursday, July 18, 2013

City of Detroit Files Chapter 9 Bankruptcy: What's next for DWSD?

Earlier today, the City of Detroit's Emergency Manager, Kevyn Orr, signed and filed a petition for Chapter 9 bankruptcy*, the largest municipal bankruptcy in U.S. history.  

For a copy of the bankruptcy petition filed earlier this afternoon in the U.S. Bankruptcy Court in Detroit, click here.  

How will this affect the Detroit Water and Sewerage Department? 

Comment: I fully expect that DWSD to become an independent water authority, as outlined by the EM on June 14, 2013. That was the direction the Department was headed even before the EM was appointed. What will that look like? How long will that transition take? Stay tuned.  

 If you'd like to get a copy of Detroit's bankruptcy petition, write me here, and put "Detroit Chapter 9" in the subject line. 

* For those readers with a PACER account, the case has been assigned Case No. 13-53846.

Update (7/19): The Hon. Steven W. Rhodes has been assigned to this case by the Chief Judge for the Court of Appeals for the Sixth Circuit.  Judge Rhodes is a highly respected jurist, who has served as a bankruptcy judge for 28 years in the Eastern District of Michigan. He was recommended unanimously by the other bankruptcy judges in the Eastern District of Michigan.     

For more about DWSD Update, click here.

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