Michigan Governor Rick Snyder (R) said yesterday that a review process on Detroit and a decision on whether the city's shaky financial condition warrants a state-appointed manager could be completed in as soon as three weeks, Reuters reported yesterday. Snyder said that he expects to receive a report from a review team he appointed on Dec. 18 in two to four weeks and that his analysis of the report would take another one to two weeks. The report could recommend an emergency financial manager who would control Detroit's checkbook and who could decide to take the city to U.S. bankruptcy court unless the state blocks the move. A chapter 9 municipal bankruptcy filing for Detroit would be the biggest ever in the U.S.
For further analysis on the situation in Detroit and to read more about chapter 9 trends, be sure to pick up a copy of ABI's Municipalities in Peril.