Detroit court trying hard to compete
BY BRENT SNAVELY • FREE PRESS BUSINESS WRITER • May 18, 2009
Detroit can't even realize the economic benefits to be had from the bankruptcies of its largest companies.
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The headquarters for Chrysler and General Motors might be in Michigan, but when Chrysler filed for bankruptcy, it did so in New York.
If GM files -- as is expected -- the automaker likely will follow Chrysler's lead, despite state Attorney General Mike Cox having asked both GM and Chrysler to file here. GM's lawyers are based in New York, and the court there is moving Chrysler's case along quickly.
That means Detroit's law firms, hotels and restaurants would lose out on millions of dollars again. Large bankruptcy cases generate huge fees for legal and advisory firms; that money often finds its way to hotels, restaurants and legal support firms.
Monday, May 18, 2009
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