Detroit's bankruptcy tab is under $165 million

Court filing reveals total cost to lawyers, accountants, consultants, mediators

DETROIT – It seems counter-intuitive, but in order to go through bankruptcy, you have to spend some money.

According to the court filing of fees and expenses, the final cost to the city of Detroit as it worked through Chapter 9 is just under $165 million, but experts said it was worth it.

Special section: Detroit bankruptcy

Detroit's bankruptcy process that we came to know as the plan of adjustment did not happen without costs to lawyers, accountants, consultants, mediators and a host of others. So why did it cost so much?

According to bankruptcy attorney Doug Bernstein, if you balance the cost against savings for the city of Detroit, those costs are more than reasonable.

The court filing breaks down all of the costs to the city for the Chapter 9 process among these costs:

  • $57.9 million to Jones Day, the city's law firm
  • $22.8 million to Miller Buckfire, the city's investment bank
  • $20.2 million to financial adviser Ernst & Young
  • $1.53 million to Judge Rhodes's experts

VIEW: City of Detroit's disclosure of fees and expenses

Everybody involved in the process comes out with less than they feel they deserve.