steven rhodes

Law
9:11 pm
Fri April 11, 2014

Detroit bankruptcy judge ok's swaps settlement; says "now is the time to negotiate"

Judge Steven Rhodes approved a key settlement in Detroit’s historic bankruptcy case Friday.

The deal will settle a costly interest-rate swaps agreement with two banks, UBS and Bank of America, for $85 million.

Emergency manager Kevyn Orr has pushed hard for such a deal. Detroit had guaranteed the swaps with casino revenue, and paid out about $200 million since 2009.

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Stateside
5:13 pm
Thu April 10, 2014

The latest developments between the DIA, Detroit pensioners, and creditors

Credit JSFauxtaugraphy/Flickr

There have been two big developments this week in the high-stakes showdown over Detroit's pensioners, its art treasures and creditors who hope bankruptcy judge Steven Rhodes will pressure the city to put those art treasures on the table.

There's a lot to try to sort out. So, as we do each Thursday, we spoke to Detroit News business columnist Daniel Howes.

Listen to the full interview above.

Politics & Government
8:44 pm
Fri December 6, 2013

Bankruptcy judge gives go-ahead for Detroit lighting plan

DETROIT (AP) - A federal judge has cleared the way for Detroit's Public Lighting Authority to immediately sell $60 million in bonds to begin fixing thousands of broken streetlights.

Judge Steven Rhodes issued his order Friday - three days after he allowed Detroit to become the largest U.S. city to enter bankruptcy.

Total financing for the lighting plan is expected to reach $210 million.

Rhodes' ruling also means $12.5 million in annual utility taxes approved by the state Legislature to back the bond sale will not be affected by the bankruptcy.

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Opinion
1:24 pm
Wed December 4, 2013

What happens now for bankrupt Detroit

Lessenberry commentary for 12/4/13

When I was growing up in the 1960s, there was a popular genre of fiction: Novels about the world when and after the presumably inevitable nuclear war happened.

One that I remember was set in rural Florida, one of the few places that avoided total destruction. The survivors set up what amounted to a working subsistence and barter economy. 

But for some, the psychological adjustment was impossible. The town banker sat among piles of paper money that he had always revered as sacred, and which suddenly had no value whatsoever. Unable to adjust, he kills himself.

Things are not nearly that bad in Detroit. But yesterday, there were clear signals that sacred cows really are going to be sacrificed. Public pensions were thought to be sacrosanct, protected by the state constitution. Well, they aren’t, according to Federal Bankruptcy Judge Steven Rhodes. Federal law trumps state law. 

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Business
8:43 am
Wed December 4, 2013

Detroit's bankruptcy & the municipal bond market

Downtown Detroit (file photo)
Steve Carmody/Michigan Radio

The judge’s decision to let the city of Detroit pursue Chapter Nine bankruptcy protection could have an effect on the municipal bond market.

Municipal bonds have long been viewed as one of the safest investments out there. But bond holders may be among the biggest losers in Detroit’s bankruptcy.

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Politics & Government
8:38 am
Wed December 4, 2013

Lessenberry talks Detroit bankruptcy

Peter Martorano Flickr

This Week in Michigan Politics, Jack Lessenberry and Christina Shockley discuss Detroit's bankruptcy eligibility.

As many observers expected, Judge Steven Rhodes ruled yesterday that Detroit is bankrupt, and that the city can proceed with its Chapter 9 filing.  Judge Rhodes said the city did not negotiate in good faith with the creditors and it was clear the state planned the inevitable bankruptcy as soon as Kevyn Orr was named emergency manager for Detroit. Judge Rhodes also said public employee pensions can be cut as part of the restructuring. He also ruled Michigan's Emergency Manager law constitutional.

Click here to listen to the full interview

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Newsmaker Interview
2:18 pm
Tue December 3, 2013

Detroit eligible for bankruptcy, what comes next?

State lawmakers have passed bills allowing the city to keep taxing at certain rates. The legislation awaits Governor Snyder's approval.
Bob Jagendorf Flickr

 Today, Judge Steven Rhodes of the United States Bankruptcy Court ruled that while the City of Detroit did not negotiate with creditors in good faith, it did file for bankruptcy in good faith. His ruling makes Detroit eligible to file for the largest municipal bankruptcy in this country’s history.

David Shepardson, Washington reporter with the Detroit News has been following the bankruptcy. He joined us to talk about this historic ruling, and what to watch for in the coming months. 

Listen to the full interview above.

Politics & Culture
4:45 pm
Mon December 2, 2013

Stateside for Monday, December 2nd, 2013

Tomorrow will be a historic day in Detroit. That's when a federal judge will decide whether the city is eligible for Chapter 9 bankruptcy protection. On today's show, we took a look at the different ways Judge Steven Rhodes could rule.

Then, we took a look at the future of newspapers. As newsrooms get smaller, and more people hop online for information, will the industry be able to reinvent itself and keep up with the times? 

And, the U.S. Supreme Court heard arguments this morning in a case that pits Michigan against an Upper Peninsula Indian tribe. We discussed the case with Rick Pluta, who is reporting from Washington D.C..

Also, we spoke to a new Michigan music duo, The Accidentals. 

But, first on the show, the Board of State Canvassers today certified a voter-initiated petition that would put new restrictions on abortion insurance coverage in Michigan. The proposal would ban abortion coverage in standard health insurance plans. Women would only be able to purchase abortion coverage as a separate rider. The measure now goes to the state Legislature, which has 40 days to pass it. If not, it will go to voters on the 2014 ballot.

MLive reporter Jonathan Oosting joined us today to discuss the issue.

Stateside
4:41 pm
Mon December 2, 2013

Is Detroit eligible for bankruptcy protection? We'll find out tomorrow

Joy VanBuhler Flickr

Tomorrow will be one for the history books, not just here in Michigan but across the nation.

Tuesday morning is when Federal Bankruptcy Judge Steven Rhodes will rule whether or not Detroit is eligible for Chapter 9 bankruptcy protection.

Detroit News reporter Chad Livengood has covered the bankruptcy trial, and he joined us today to talk about what might happen tomorrow morning.

Listen to the full interview above.

Opinion
8:22 am
Mon December 2, 2013

What happens after the Detroit bankruptcy ruling

Lessenberry commentary for 12/2/13

Tomorrow morning, Federal Bankruptcy Judge Steven Rhodes will announce whether or not Detroit can file for bankruptcy. If, as expected, he does authorize this, it will mean grim times ahead.

The city almost certainly will lose some assets; creditors will get paid only a fraction of what they are owed, and elderly and retired city workers may lose at least some of their pensions.

None of this will be easy, or fun. But we all have to hope that is exactly what the judge does. Otherwise, the city will be in the position of a dying lamb among a flock of turkey buzzards.

The city has close to 100,000 creditors who together are owed probably more than $18 billion. If the judge rules Detroit is ineligible for bankruptcy, then that will take the freeze off all the lawsuits creditors filed against the city before the Motor City asked for bankruptcy protection back in July. 

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Law
7:00 am
Fri November 15, 2013

Detroit bankruptcy judge rejects bid to keep loan terms secret

The judge in Detroit’s bankruptcy case has denied a bid to keep some details of a controversial loan agreement secret.

Judge Steven Rhodes ruled Thursday that the city must disclose all the terms of a proposed loan from the British financial giant Barclays. That loan deal is as complex as it is controversial.

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Detroit bankruptcy
1:03 pm
Wed November 13, 2013

Judge will soon decide whether Detroit will get bankruptcy protection

The next steps for Detroit? This man will soon decide. Judge Steven Rhodes.
John Meiu Detroit Legal News Publishing LLC

Today is the last day U.S. Bankruptcy Judge Steven Rhodes will accept documents from all sides of the Detroit bankruptcy case.

Rhodes will then look at all the evidence and decide whether the city of Detroit can reorganize itself under Chapter 9 bankruptcy laws. 

Rhodes has heard a lot. The city's future path will be up to him.

His decision will be based upon a) whether the city truly has no other options to pay its debts, a b) whether the city negotiated in good faith with its creditors prior to saying bankruptcy was the only way.

No one seems to be arguing that the city has a viable way to pay its debts. And Daniel Howes of the Detroit News argues that defining "good faith" negotiations in exceedingly difficult in this case.

That's because Detroit owes money to nearly 100,000 creditors.

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Law
1:50 pm
Thu November 7, 2013

Former state Treasurer Andy Dillon finishes Detroit bankruptcy testimony

Former state Treasurer Andy Dillon.
Associated Press

Former state Treasurer Andy Dillon finished his testimonial in Detroit’s bankruptcy trial, bringing his three-day testimonial to a close.

On Tuesday, Dillon defended his recommendation for Detroit’s bankruptcy filing, saying it was a “last-resort option.” But some of Detroit's creditors are arguing that the decision to file for Chapter 9 bankruptcy was not exactly a last resort, but instead a quick decision that overlooked an opportunity to continue negotiations.

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Law
3:49 pm
Sat November 2, 2013

Detroit, bankruptcy creditors talking in private

(file photo)
Steve Carmody/Michigan Radio

DETROIT (AP) - While a judge determines the future of Detroit's bankruptcy case, key people are meeting behind the scenes to try to reach deals.

Private mediation sessions are scheduled for Wednesday, at the same time the city tries to convince a judge that Detroit is eligible to fix its debts in bankruptcy court. The trial in front of Judge Steven Rhodes started on Oct. 23.

Politics & Government
8:41 am
Sat October 26, 2013

Detroit City Council has no alternative to $350M loan plan to pay off city's debt

Downtown Detroit (file photo)
Steve Carmody/Michigan Radio

DETROIT (AP) - The Detroit City Council has decided not to push an alternative to a $350 million loan designed to help the city pay off some of its massive pension debt.

Council members on Friday discussed the competing plan to the post-bankruptcy petition financial proposal engineered by state-appointed emergency manager Kevyn Orr.

About $230 million from Barclays would be used to fully pay off a complicated pension debt deal involving two major creditors. The rest would be used to improve basic city services.

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Stateside
3:33 pm
Wed October 23, 2013

What can we expect from the Detroit bankruptcy trial?

Peter Martorano Flickr

Is Detroit really broke?

That’s the question before Federal Bankruptcy Judge Steven Rhodes as Detroit’s bankruptcy eligibility trial began today. His ruling could open the door for the City of Detroit blowing up billions of dollars in debt and liabilities.

As has been the case ever since the bankruptcy filing on July 18th, this is all being closely watched from coast to coast. History is being written in Judge Rhodes' courtroom.

Daniel Howes, Detroit News Business Columnist, and the former Chief of Communications for the City of Detroit, Karen Dumas, joined us today to talk about what this trial means and what we might see.

Listen to the full interview above.

Opinion
8:49 am
Wed October 23, 2013

Detroit bankruptcy on trial

Lessenberry commentary for 10/23/13

Well, today is the day that the City of Detroit goes to court. Bankruptcy court, that is. Not to settle the final details of what will happen, but to ask the judge to allow it to declare bankruptcy.

This has been going on so long now that there’s a tendency to take Detroit bankruptcy as an established fact. In fact, all that has happened is that the Emergency Manager, Kevyn Orr, filed a petition in July asking to be allowed to declare bankruptcy. Since then, we’ve been treated to a long series of revelations that make bankruptcy appear the only option.

Detroit has close to $20 billion dollars in unfunded liabilities, and next to no assets. It wouldn’t make much of a dent if they sold the entire collection of the Detroit Institute of Arts, and then sold the building to a billionaire who wanted a mausoleum.

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Opinion
8:53 am
Mon July 29, 2013

Michigan Attorney General intends to intervene on behalf of Detroit pensioners

Lessenberry commentary for 7/29/2013

Last week, Michigan Attorney General Bill Schuette did something many found startling, especially those politically liberal. Schuette announced that in Detroit's bankruptcy filing he intended to intervene on behalf of those who have pensions coming.

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Politics & Government
8:37 am
Wed July 24, 2013

This week in Michigan politics: Detroit's bankruptcy case, Judge Steven Rhodes, dissolving schools

Capitol Building, Lansing, MI
Matthileo Flickr

Week in Michigan politics interview for 7/24/2013

This week in Michigan politics, Jack Lessenberry and Emily Fox discuss the legality of Detroit's filing for bankruptcy, Judge Steven Rhodes and the first federal bankruptcy hearing today, and the fate of Buena Vista and Inkster school districts.

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Politics & Culture
5:06 pm
Tue July 23, 2013

Stateside for Tuesday, July 23rd, 2013

Lawmakers in Lansing recently approved a $65 million increase in the state's Great Start Readiness Program. That's Michigan's preschool program for 4-year olds at risk of being under-prepared for kindergarten. But, many childhood advocates say that's not enough. We took a look into whether more needs to be done.

We also heard about space exploration 21st century style. We spoke to a Michigan scientist who is using Kickstarter to make his research a reality.

Also, U.S. Bankruptcy Judge Steven Rhodes will preside over the largest municipal bankruptcy in American history. We spoke with Brent Snavely of the Detroit Free Press about what we can expect from the judge.

First on the show, the Chapter 9 bankruptcy filing by the city of Detroit has some wondering if Detroit is not an isolated incident. Could other financially struggling cities be on the same path?

To help us answer this question, we turned to Michigan Democratic Congressman Dan Kildee. Kildee represents Flint and Saginaw.

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