Buckfire’s firm was contracted to help advise the city and emergency manager Kevyn Orr through Detroit’s deep fiscal crisis and possible Chapter 9 bankruptcy.
The 56-year-old Detroit native, who maintains deep ties to the area, spoke with the Free Press on Wednesday at MGM Grand Casino about Detroit’s plight and his connection to the area.
So can the city’s restructuring still be achieved without bankruptcy? “It’s possible, but it will be hard,” Buckfire said.
The severity of Detroit’s financial crisis is just one of the reasons its bankruptcy is looking inevitable. In recent days, two lawsuits have been filed by retirees and active workers that seek to block Detroit’s restructuring plan. In addition, two bond insurers have said they oppose Orr’s plan, and a bus tour for creditors through the city was canceled.
Buckfire maintains that reaching agreements with Detroit’s creditors is preferable to a federal bankruptcy filing. In bankruptcy, the city and its creditors would be subject to the decisions of a judge and would incur exorbitant legal and professional service bills.
However, bankruptcy experts said, Orr would have tremendous influence in a Chapter 9 bankruptcy, and a judge would likely defer many decisions to him.