The Detroit bankruptcy judge has ordered three mediators – all federal judges – to work with Detroit and Wayne, Oakland and Macomb Counties to address the possibility of a regional water authority. The bankruptcy judge also ordered Detroit’s bond insurers to mediate with the city. Detroit Free Press (April 17, 2014); The Bond Buyer (March 21, 2014)
Mediation has resulted in a tentative settlement between bankrupt San Bernardino and its biggest creditor, Calpers, which should help...
Emphasizing the desirability of consensual agreements between Detroit and its creditors compared to a unilateral plan, the federal bankruptcy judge overseeing the massive Detroit bankruptcy appointed another federal judge as the mediator to work with Detroit and its 100,000 creditors as they seek to address $18 billion of debt. The mediator, in turn, appointed a team of current and former federal judges from Michigan, Oregon, Colorado and Illinois, and has the authority to issue any order needed...
