Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Detroit at risk of running out of cash in one week
Source: Reuters
Detroit at risk of running out of cash in one week
Fri Jun 8, 2012 4:12pm EDT
(Reuters) - Detroit may run out of cash in a week if the city is cut off from money raised under a now-shaky deal with the state of Michigan, city officials said on Friday.
Jack Martin, Detroit's new chief financial officer, made the pronouncement on Friday, a day after Michigan warned that a pending lawsuit threatens to derail plans for a bond financing that would raise $137 million for the cash-strapped city, said Naomi Patton, a spokeswoman for Mayor Dave Bing.
While Detroit will be able to make its next payroll, the city could be out of cash by June 15, Patton said.
Tom Saxton, Michigan's deputy treasurer, advised the city in a letter on Thursday that a city lawsuit challenging Detroit's financial stability agreement with Michigan needs to be withdrawn by early next week or the city will lose $82.5 million in state revenue-sharing payments between this month and December. Those funds are needed to pay off an interim bond issue that was privately placed in March.
[font size=1]-snip-[/font]
Fri Jun 8, 2012 4:12pm EDT
(Reuters) - Detroit may run out of cash in a week if the city is cut off from money raised under a now-shaky deal with the state of Michigan, city officials said on Friday.
Jack Martin, Detroit's new chief financial officer, made the pronouncement on Friday, a day after Michigan warned that a pending lawsuit threatens to derail plans for a bond financing that would raise $137 million for the cash-strapped city, said Naomi Patton, a spokeswoman for Mayor Dave Bing.
While Detroit will be able to make its next payroll, the city could be out of cash by June 15, Patton said.
Tom Saxton, Michigan's deputy treasurer, advised the city in a letter on Thursday that a city lawsuit challenging Detroit's financial stability agreement with Michigan needs to be withdrawn by early next week or the city will lose $82.5 million in state revenue-sharing payments between this month and December. Those funds are needed to pay off an interim bond issue that was privately placed in March.
[font size=1]-snip-[/font]
Read more: http://www.reuters.com/article/2012/06/08/us-detroit-bonds-payment-idUSBRE85719B20120608
3 replies
= new reply since forum marked as read
= new reply since forum marked as read
