In Michigan, one remedy for financially distressed school districts and municipalities is the appointment of an emergency financial manager who, by law, has broad powers to sell assets, consolidate departments, seek layoffs, reduce services and enact other cost-saving measures.
Warner has tapped into the collective expertise of attorneys who specialize in government affairs, municipal law, bankruptcy, financial services, litigation, labor and employment and other related areas of the law to create its Emergency Manager Law Group.
When a state-appointed financial review team recently issued a finding that says the City of Detroit is in a financial emergency, we collaborated with two New York law firms, Bingham McCutchen LLP and Cadwalader, Wickersham & Taft LLP, to develop joint communications that analyze:
The options available for Detroit
The process that ensues if Gov. Rick Snyder confirms the financial emergency finding of the review team
Potential issues in a municipal bankruptcy under Chapter 9 of the U.S. Bankruptcy Code
The communication with Bingham is available here
. The Cadwalader communication can be accessed here
.The financial review team report is available here
. Background and supplemental information from the Michigan Department of Treasury is available here
We also have put together a clearinghouse of information from local, state and national media outlets to help you stay on top of the issues. The site can be accessed here