State Treasurer Andy Dillon said that he believes Detroit’s turnaround is building momentum and the city will be in better shape once emergency manager Kevyn Orr completes his tenure, the Detroit Free Press reported today. But it is clear that a municipal bankruptcy is possible, and Dillon said that if it happens, it must be well-planned to avoid pitfalls that have left cities such as Stockton and Vallejo, Calif., struggling to provide services despite chapter 9 filings. Acknowledging the public uproar over the vulnerability of the Detroit Institute of Arts’ assets in a possible Detroit bankruptcy, the aim, he said, would be to ensure that a Detroit bankruptcy “is not a failed transaction,” Dillon said.
