Public-private partnerships could be a lifeline for cities
By Kent Rowey
Detroit is fighting for its fiscal survival. Over the last four years, the city has spent $100m (£65m) more each year than it has collected. Long-term liabilities are estimated to be as high as $20bn. Gov Rick Snyder of Michigan installed an emergency manager, who most assume is preparing for a Chapter 9 filing, which would be the largest municipal bankruptcy in US history.
In May, the manager, Kevyn Orr, was considering selling parts of the permanent collection at the Detroit Institute of Arts to pay creditors. Orr later backed off that threat, but no doubt he wanted to scare city fathers into getting serious about averting financial disaster. But new worries followed that he would have to unload the city’s collection of 62 classic cars.
Detroit’s plight may be extreme, but its problems are increasingly common in cities across the US. Municipalities are struggling to make public payroll, maintain basic services or meet pension fund obligations. Many of the hard choices Detroit has to make will be repeated in towns in the midwest, Rust Belt, California and the north east…
If you are registered and logged in to the site, click on the link below to read the rest of the Allen & Overy briefing. If not, please register or sign in with your details below.
News from Allen & Overy
News from The Lawyer
Briefings from Allen & Overy
Extension of the sanctions relief provided for in the Joint Plan of Action between the P5+1 and the Islamic Republic of Iran
On 18 July 2014, the P5+1 (the US, the UK, Germany, France, Russia and China) agreed with Iran to extend their commitments under the Joint Plan of Action.
This year is expected to be a bumper year for pension risk transfer in the UK.
Analysis from The Lawyer
At the time of its launch Accutrainee was described as a revolutionary change to the training model. Has it proved to be so? Not really.
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.