|
|
Home | Submit Press Release | Advertise | Submit Website
(EMAILWIRE.COM, December 17, 2012 ) Dallas, TX -- Mayor Dave Bing of Detroit announced on Friday that the city would be forced to layoff between four and 500 employees within the next fiscal quarter. At the press conference, Bing noted the cityÂ’s struggles with finances, and the move was being used to stave off Chapter 9 bankruptcy. The announcement was made whilst the mayor and council clash over the way to solve the troubles.
With a population of over 700,000, Detroit must find a way to get its financial house in order. If it fails to do so, it will become the largest city to file for bankruptcy.
“I do understand the frustration with the treasurer and the governor because we are equally frustrated," Bing said, according to Mlive.com.
Andy Dillon, State Treasurer, met with both the mayor and council in the previous week. The treasurer is expected to set a preliminary review sometime within the next week .That step could lead to having the state-appointed manager take control of the city's entire finances.
“If they want to move forward with an emergency financial manager — I don't agree with it — but that's not my decision. I don't think it's the appropriate decision,” Bing said.
“The treasurer has indicated it’s likely [a preliminary review] would start next week,” spokesman Terry Stanton said, saying there were “growing concerns” about Detroit’s economic situation. Clearly, there’s a cash burn problem in the city.”
“At this point, it doesn't appear to me that a Chapter 9 filing will occur anytime in the near future,” said George B. South III, a partner at law firm DLA Piper. (South is representing a creditor of the city.) “Municipalities, in general, will file as a last resort. My sense is it wouldn't be an overnight decision.”
There are up to 60 days to set preliminary reviews and framework. If needed, an emergency financial manager could be appointed. That position would be seen as a guide through the Chapter 9 process.
The moves have been looming, as Bing had said the city may need to furlough workers last month. Now comes the news that jobs will be removed altogether.
“Due to the failure to meet the first milestone in our agreement with the State — and with the second milestone now at risk — I have directed my Administration to begin planning to offset an anticipated $30 million cash shortfall,” he said in a statement.
About Judith Swift:
Judith Swift (www.judithswift.com) provides information and services for all who seek council regaridng bankruptcy and debt consolidation. Learn everything one would need on her website, or contact her offices for a free consolidation.
Judith A. Swift, P.C.
Judith A. Swift
214 696 6200
news@postpressrelease.com 
Source: EmailWire.com
|
|
