Bing to CNN: I have 'second most difficult' job after president

[313WX]

I'm not sure this holds true. The Bankruptcy Judge has the ability to unilaterally accept or reject labor contracts as it sees fit, unless I'm misunderstanding. With whom do you believe that labor leaders would be negotiating? The city? The bankruptcy judge? How exactly does this play out?

Everything I've ever read about Chapter 9 is that it's going to be worse everyone, take far, far longer, and be extremely expensive...leaving that much less money for creditors, pensioners, and labor unions.

According to Chapter 11 Bankruptcy, the employer must first to go to the table and attempt negotiate a contract. If it can't negotiate one, it can request that the Bankruptcy Judge reject the current one and they then can impose a contract.

I'm not sure if that's the same for Chapter 9 Bankruptcy.

Even so, the problem is Bing did not first negotiate a contract in good faith before imposing on, and besides that, as the city's Consent Agreement is only binding under state law, he is required to negotiate labor contracts with the unions.

[Honky Tonk]

"According to Chapter 11 Bankruptcy, the employer must first to go to the table and attempt negotiate a contract. If it can't negotiate one, it can request that the Bankruptcy Judge reject the current one and they then can impose a contract."

Well, we can save some money by skipping part one......

[313WX]

"According to Chapter 11 Bankruptcy, the employer must first to go to the table and attempt negotiate a contract. If it can't negotiate one, it can request that the Bankruptcy Judge reject the current one and they then can impose a contract."

Well, we can save some money by skipping part one......

It's not just about saving money. It's about doing a debt restructuring legally.

You don't think these lawsuits are costing the city just as much money?

[Honky Tonk]

It's not just about saving money. It's about doing a debt restructuring legally.

You don't think these lawsuits are costing the city just as much money?

My apologies, It was my late night sarcastic humor, [[or attempt @). The first line of the post hit me funny: According to Chapter 11 Bankruptcy, the employer must first to go to the table and attempt negotiate a contract.

It seems like that's all that's been going on, talking, talking, more talking, and the City's going nowhere. We're just deadlocked in the same old mentality as we were 40 years ago, except conditions are now much worse. Yes, Detroit seems to have money squandering down to a science, and I don't have any tax dollars left to donate.

[corktownyuppie]

According to Chapter 11 Bankruptcy, the employer must first to go to the table and attempt negotiate a contract. If it can't negotiate one, it can request that the Bankruptcy Judge reject the current one and they then can impose a contract.

I'm not sure if that's the same for Chapter 9 Bankruptcy.

From what I understand, Chapter 9 bankruptcy is worse for creditors [[and labor contracts), not better, than the existing situation because the city doesn't have to negotiate contracts; it just needs to propose a workout plan that the court finds "reasonable".

http://www.pennlive.com/editorials/i...ter_9_ban.html

Under Chapter 9, municipalities must develop a plan to pay off the debt and submit it to the judge for final approval. Westfall drew up a plan to reduce the debt to $6 million — the amount it felt it could reasonably make with its tax base — payable through 20 years [[so $300,000 a year without interest). The developer agreed with the plan because the judge may have crammed downed a less favorable plan if there was a fight in bankruptcy court.

Moreover, I think what's going to be the toughest thing for union contracts is that they don't even get the opportunity to submit a competing plan.

3. No competing plans by creditors. The plan to solve the municipality’s debt problems can only come from the municipality. Creditors cannot submit their own plans. That said, under state law, the municipality must work in conjunction with the Department of Community and Economic Development during a Chapter 9 case.

So in essence, the city will have to submit a plan to the court, and if the court finds it reasonable, it goes. The creditors can object, which gives it some leverage in trying to negotiate a better deal before a plan gets submitted, but essentially their hands are tied.

I can't see anything that will be better for the city's creditors under a bankruptcy plan.

Here's a more interesting question...when the city submits a plan to the court, that means that it needs to be approved by both the mayor and city council. So how long is it going to take for both of them to approve a reorg plan to sbumit to the courts.

And what happens during the 12-18 month process where they try to work it out? Are cops getting paid? Are bondholders getting paid? Who is getting paid? And with what money?? You're still going to need an infusion of cash to keep the lights on while the whole process is going on.

Which means you're going to need to borrow it. Who will lend it? Under what terms? At the end of the day, I think you'll still end up with the same result. Labor contracts shredded, city government outsourced to the private sector or merged at the county level, a haircut for bondholders.

But instead of a swift reorganization for 6 months, you'll drag the carnage out 2-3 years. And the real gridlock isn't gonna be between the city and its creditors. It'll be between the Mayor and City Council who have to agree on the workout plan to submit to the courts.

Which is why, in the end, I think Emergency Management powers will be necessary. You can give those powers to the Mayor, or you can give them to the City Council President, or you can give them to a 3rd party. But one way or the other, someone will need to have unilateral power to get anything done.

[401don]

http://www.freep.com/article/2012113...rld-Series-bet

Another fine use of time and money.

[Honky Tonk]

http://www.freep.com/article/2012113...rld-Series-bet

Another fine use of time and money.

Gee, I'd like to use the word incompetent, but now I fear being labled a racist. Maybe he's checking out places to live after the election.

[Wheels]

LeDuff without all the fluff.

http://www.myfoxdetroit.com/story/20...-diificult-job

[313WX]

LeDuff without all the fluff.

http://www.myfoxdetroit.com/story/20...-diificult-job

I'm not a fan of Chuckles, but in that report he was dead on.

[poobert]

LeDuff without all the fluff.

http://www.myfoxdetroit.com/story/20...-diificult-job

Well said. Normally I would oppose the recall effort as a waste of resources but the sooner Bing is gone, the better. Absolutely nothing gets done. Each month - each hour - he is in office is a drain on resources. If we could get him out several months before his term expires someone - anyone - may be able to salvage something.

He's a disgraceful human being. While I wish him no specific harm I wish him no good. What a miserable, pathetic, wimpering, scornful legacy to leave the world in your twilight years. If he ever showed his damned face out in public I'd pelt him with rotten vegetables. Surly there must be some layer of hell reserved for the likes of these Neros.

[downtownguy]

Wow, I didn't watch the video but instead read the text. If all of LeDuff's pieces were as serious as that, I might watch him.

[mwilbert]

Everything I've ever read about Chapter 9 is that it's going to be worse [for] everyone, take far, far longer, and be extremely expensive

Compared to what? The nonsense that has gone on so far?

[corktownyuppie]

Compared to what? The nonsense that has gone on so far?

Yes. Worse than so far.

[Dexlin]

We should be begging for bankruptcy. I don't know what the hell you are talking about, to be frank. Let the dictator not be someone put in place by the city or the state, already. It's time to be done with this. Hand this over to a judge and let him or her cut the baby in half. I don't care if the judge is a liberal or conservative, as long as the arbiter isn't someone in the rotted governments of the City of Detroit or State of Michigan.

[mwilbert]

Yes. Worse than so far.

I doubt it. It wouldn't take longer--we've been doing the finances going down the drain thing for six or seven years anyway. Chapter 9 is a relatively streamlined process. That time during which essentially no progress has been made in dealing with the problems of city government was a huge opportunity cost. The appropriate comparison is bankruptcy to seven [[or more, depending upon how you look at it) wasted years of drift.

I grant that the pain would be more acute, especially during the first phases of the bankruptcy process, but I very much doubt the overall net would be worse.

[Hypestyles]

I wonder how many one on one conversations-- if any, has Bing had with Pres. Obama?

there also needs to be a "meet with the mayor day" where people get 5 minutes one on one..

[313WX]

I wonder how many one on one conversations-- if any, has Bing had with Pres. Obama?

there also needs to be a "meet with the mayor day" where people get 5 minutes one on one..

Bing probably knows he'll get everything short of a 2x4 to the head from most people, so that will never happen.

[downtownguy]

We should be begging for bankruptcy. I don't know what the hell you are talking about, to be frank. Let the dictator not be someone put in place by the city or the state, already. It's time to be done with this. Hand this over to a judge and let him or her cut the baby in half. I don't care if the judge is a liberal or conservative, as long as the arbiter isn't someone in the rotted governments of the City of Detroit or State of Michigan.

This is why I tend to lean towards bankruptcy, but I wish I had more info to come to a better understanding of the pros and cons. [HELLO LOCAL MEDIA!]

At Dexlin points out, having a judge in charge would assuage the concerns of many citizens that the state is taking over. Sometimes I wonder if Snyder is pushing so hard for an EM because it is less understood than bankruptcy and therefore doesn't have the same stigma attached to it.

[corktownyuppie]

This is why I tend to lean towards bankruptcy, but I wish I had more info to come to a better understanding of the pros and cons. [HELLO LOCAL MEDIA!]

I understand where you're coming from. I think we'll see more study on bankruptcy as either: a) we get closer to it or b) you hear more public advocacy for it.

Here's the think people need to understand about Chapter 9. A bankruptcy judge doesn't take over in the way that you might see in a corporate bankruptcy. In chapter 9, the judge does not want to get involved with local governance issues. Because of that, it's up to the city to propose a workout plan...and then the judge will hear all the arguments from all the parties about why it's ok vs. not ok.

Here's the thing....the city still needs to be the one to propose a debt restructuring, understanding that the city will likely need to borrow money to burn through while going through this restructuring. What are the chances we could get both the mayor and the existing city council to agree what proposal to even submit?

It's like we're dead on arrival before we even get to court.

The only solution is for one entity to get unilateral power to make decisions. It could the Mayor. It could be City Council President. It could a single person that is elected by the City Council and acceptable to the Mayor. There's a lot of ways we can do it.

But in the end, there's gotta be someone who can propose something to the judge as a starting point. Who is that person? What will be on that proposal? That's the stuff we should be figuring out already. And if we could do that, we might even be able to save the time and expense of bankruptcy court.

[downtownguy]

Here's the think people need to understand about Chapter 9. A bankruptcy judge doesn't take over in the way that you might see in a corporate bankruptcy. In chapter 9, the judge does not want to get involved with local governance issues. Because of that, it's up to the city to propose a workout plan...and then the judge will hear all the arguments from all the parties about why it's ok vs. not ok.

How much flexibility does the judge have here? For instance, knowing that getting the mayor and council to agree on a single plan might be futile, could the judge solicit two plans and pick one, or a combination of the two?

[corktownyuppie]

How much flexibility does the judge have here? For instance, knowing that getting the mayor and council to agree on a single plan might be futile, could the judge solicit two plans and pick one, or a combination of the two?

That's a damned good question.

1) From what I understand, the courts are unwilling to make decisions regarding the governance of the city. If the court is asked to weigh between a mayoral proposal vs. a city council proposal, is that going against the doctrine of keeping at arms-length?

2) The law firm that's probably more likely to be able to answer this question with expertise is Miller Canfield. Will the city take Miller Canfield's advice?

Lots of good questions, and I'm not well-versed in them at all. What I do know is that if bankruptcy is on the table, then the public deserves to be a part of the conversation. So I'm glad this dialogue is starting to happen.

Who knows, perhaps when people see what bankruptcy look like, then they will be more willing to accept an EM. Or, the inverse, when they realize how much better bankruptcy looks, it might just speed up the process to get there.