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State Takes Next Step Towards Detroit Emergency Financial Manager

December 17, 2012 ----------------- State officials say Detroit is in such poor fiscal condition that a special team is being appointed to review the city’s books. It’s the next step towards possibly appointing an emergency manager to take over the city’s finances. A preliminary review found Detroit will have a deficit of more than 100 million dollars by the end of next year – and could be so broke it cannot meet its payroll. So the state is forming a panel to examine the city’s books – and determine if the only option is to take over Detroit’s finances. Michigan Governor Rick Snyder acknowledges the city might be required to file for Chapter Nine bankruptcy protection…though…the Governor says…only after all other possibilities are exhausted. Moody’s Investors Service cautions that any actions regarding Detroit’s finances – including bankruptcy – will likely be challenged by creditors in court.