In some ways, the bankruptcy is like a jigsaw puzzle, where a thousand little pieces have to fall into place before the big picture can take shape. ~ Stephen Henderson, The Detroit Free Press
One More Lap. U.S. Bankruptcy Judge Steven Rhodes yesterday appointed Martha Kopacz (please see court order below) to serve as: “The [U.S. Bankruptcy] Court’s expert witness [who] shall investigate and reach a conclusion on:
- (a) Whether the City’s plan is feasible as required by 11 U.S.C. § 943(b)(7); and
- (b) Whether the assumptions that underlie the City’s cash flow projections and forecasts regarding its revenues, expenses and plan payments are reasonable.
Judge Rhodes, who described the unprecedented appointment as temporary, made the $595/hour appointment of Martha Kopacz of Philadelphia-based Phoenix Management Services just four days after interviewing five candidates in his courtroom. She estimated her fees would cost “about seven figures.” In addition, Judge Rhodes asked Richard Ravitch, the former Lieutenant Governor of New York and Co-Chair with Paul Volcker of the State Budget Crisis Task Force to serve as a consultant on municipal finance issues and viability of the city’s debt-cutting plan. Mr. Ravitch will not ask for payment. The Judge has described the unique role as one to assist him in assessing the feasibility of Detroit’s proposed plan of adjustment, including reviewing the city’s financial assumptions and projections. Continue reading
The GMU Municipal Sustainability Project 