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Emergency Manager Says Bankruptcy "Not An Option" For Detroit Schools


(MPRN-Lansing) The state-appointed emergency manager of Detroit Public Schools says bankruptcy is not a realistic option if the district runs out of money in seven weeks. 

Former federal bankruptcy judge Stephen Rhodes says there’s very little unsecured debt to fight over. He says the result would be expensive litigation.

“If we don’t get that money from the Legislature, then we have to take it out of the classroom, and if we take it out of the classroom, then our kids will suffer.”

The state House and the state Senate have adopted competing plans with a lot of differences. They include how much money to spend on the rescue plan, and how to handle charter schools in the city.

Rhodes presided over the city of Detroit’s bankruptcy case. He appeared on the Michigan Public Television show  Off The Record.

Rhodes also said any Detroit schools rescue plan has to include more control over opening new charter schools in the city.

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