Emory Bankruptcy Developments Journal


In 2018, four years after the Motor City went bankrupt, Detroit reentered the municipal securities market and issued new debt. The bond offer is both indicative of the city’s financial turnaround and is counter to the theory that bankrupted municipalities will be punished by markets with prohibitively expensive interest rates post-bankruptcy. This Article examines chapter 9 of the Bankruptcy Code, and the ramifications for bankrupted municipalities as they reenter the municipal securities market.