DETROIT – Flashpoint began with a discussion about the city of Detroit's post bankruptcy phase. Judge Steven Rhodes, who oversaw Detroit's bankruptcy case, joined Devin Scillian to talk about Detroit's current condition and how far the city has come in its battle with bankruptcy.
Rhodes said the position Detroit is in now would have seemed impossible to achieve so quickly at the beginning of the process. He talked about the complexity of the situation and why speed was so important in making changes.
Watch: Detroit becomes largest US city to file for Chapter 9 bankruptcy
"It was critical to Detroit's revitalization for it to come into and get out of bankruptcy as promptly as possible," Rhodes said. "It didn't have the money to stay in for a long time and it just needed to move through the process and get started with its rebirth as promptly as possible."
He said one of his primary worries was working out a debt package. He said the city had to provide municipal services in order to start paying out that debt.
Rhodes never really believed that the art at the DIA was in play, and he talked about the issues that went into the battle over the art.
He talked about how the bankruptcy ruling affected bond holders and unsecured creditors.
You can watch the first part of this conversation with Rhodes in the video posted at the top of the article.
The conversation continued in the second segment, as Devin asked Rhodes about the swaps deal that happened under former Detroit Mayor Kwame Kilpatrick.
He said that what happened during the deal should have been a red flag that bankruptcy was a better choice for the city.
Rhodes said Detroit should have been considering bankruptcy by 2005, when the swaps deal was made. Having done so would have put the city 10 years ahead of where it is now, he said.
He also said Governor Rick Snyder's leadership has played a critical role in how Detroit has responded to the bankruptcy plan.
When asked about potentially allowing cameras into the court for bankruptcy hearings, Rhodes said he would have held a hearing on the subject because there was a strong First Amendment argument to support broadcasting the proceedings.
Devin asked Rhodes to talk about his relationship with Detroit Emergency Manager Kevyn Orr.
"In the end, I have nothing but admiration for the job that he did," Rhodes said of Orr. "Of all of us who worked in the bankruptcy, his was, by far I think, the most complex because he had to deal with the city's problems. He had to decide how to solve them and he had to decide how to deal with the creditors. That was an immensely complex undertaking and he had conflicts he had to deal with all over the place. And he handled it with grace and professionalism and competence and skill."
He also addressed some of the troubles he had with Orr during the Emergency Manager's testimony.
"What was healthy was that he was willing to put himself out in front of the people and justify the work he was doing as the Emergency Manager and to establish in the minds of the city that he was doing what he could to save the city," Rhodes said.
Rhodes also talked about the expenses of going through the bankruptcy process and why it was such an expensive court process.
Click on the link below to watch the rest of this conversation with Rhodes.
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In the final segment, Devin talked about the Marche Du Nain Rouge in Detroit and how it celebrates the city's success.
To see Devin's take on the event, click on the video below.
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