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Detroit Bankruptcy To Cost Millions

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http://www.nytimes.com/2013/10/08/us/billions-in-debt-detroit-faces-millions-in-bills-for-bankruptcy.html?ref=business&_r=0

DETROIT — This city is learning that it is expensive to go broke.

Even as it wrestles with the $18 billion of debt that has overwhelmed it, Detroit has already been billed more than $19.1 million by firms hired to sort through that debt, search for ways to restructure it, and now guide the city through court. That does not include more costs that the city is expected to bear for the support staff for its state-appointed emergency manager, and for another set of lawyers and consultants to represent city retirees.

“It’s just ridiculous,” Edward L. McNeil, an official with the local council of the American Federation of State, County and Municipal Employees, said of the mounting costs. “The only thing that’s getting done is that these people are getting paid big-time while the citizens of Detroit are getting ripped off.”

The uncharted scale of Detroit’s bankruptcy — it is the largest municipal bankruptcy filing in the nation’s history in terms of both the city’s population and its debt — suggests that it may also become the costliest, experts say. City officials offer no estimate for a final tab, but some bankruptcy experts say the collapse could ultimately cost Detroit taxpayers as much as $100 million. As of last week, 15 firms had contracts with the city that could total as much as $60.6 million, city records show.

Why do the retirees need consultants?? They must be making a mint out of it all.

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http://www.nytimes.com/2013/10/08/us/billions-in-debt-detroit-faces-millions-in-bills-for-bankruptcy.html?ref=business&_r=0

Why do the retirees need consultants?? They must be making a mint out of it all.

So the union, the boss of which makes more than $500,000 a year, is complaining that the city is spending too much on cutting them off from the gravy train. Whatever.

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