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View Diary: Detroit files for bankruptcy, heightening uncertainty for residents, workers, and retirees (80 comments)

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  •  Some don't think they are unsecured at all: (0+ / 0-)

    Apparently some of the bondholders believe they have a security interest in revenues.   It's an issue for the bankruptcy judge to decide; I really don't know the details.  But if so, those bondholders may have priority over everyone else.

    "We're now in one of those periods when the reality of intense pressure on the middle class diverges from long-held assumptions of how the American bargain should work" --James Fallows

    by Inland on Fri Jul 19, 2013 at 09:37:43 AM PDT

    [ Parent ]

    •  like revenue bonds: sewer bonds, water bonds, (0+ / 0-)

      etc.

    •  Indeed (0+ / 0-)

      But it seems likely that Orr's move means he thinks that they won't be given secured standing. Of which there's a certain logic to that. What will be most interesting is who ends up with the case; depending on the judge, there are two very different agenda that could be implemented.

      Personally, I like the idea that Canada buys it at a liquidation sale. I have a soft spot for Detroit.

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