David Gamage Describes Legal Scenario if Oakland Declares Bankruptcy

KQED-FM, Forum with Michael Krasny, June 10, 2009 Host Michael Krasny
http://www.kqed org/epArchive/R906100900

“The city’s contracts are potentially all up in the air. More or less everything the city does is reviewable by a bankruptcy judge in a bankruptcy court. The bankruptcy court can tear up contracts that otherwise the city couldn’t alter—and force the city to restructure its finances in ways that the political leaders wouldn’t necessarily approve. In fact, the last thing any entity, public or private, wants to happen is for lots of talk to be out there about bankruptcy without bankruptcy actually happening, because you get all the costs without any of the potential benefits.”