Bankruptcies, especially on the scale of the one that Detroit filed for last year, typically take years and even decades, with many contentious and slow-moving hearings and court appearances.  Chief U.S.  District Judge Gerald Rosen has been utilizing confidential mediation meetings to get fast results on the issues surrounding the record-setting municipal bankruptcy, most notably arranging for $800 million in pension fund rescue money in a single mediation session.

Mediation has also seen quick resolution to other bankruptcy-related issues, including

• Retirees reached an agreement with the city concerning reductions in health care as part of their retirement packages, which included the establishment of a health care trust for their costs.

• Another mediation session saw the Detroit Institute of Arts offer $100 million to help shore up the ailing pension fund.

• A mediated deal to lease the water department to a new regional authority that would gain the city $47 million annually is close to being signed off on.

The speed of the process is due entirely to aggressive mediation, conducted in judges’ chambers in complete privacy.  The confidential nature of the mediations concerns some, who fear that the public’s interest is being overlooked in favor of fast resolution.  But most agree that the sheer scale of Detroit’s bankruptcy would make it impossible to resolve in the courts.