Clean slate. No more interest payments. Pensions fully funded. Money to demolish all the dilapidated buildings and build urban green spaces. And then the ongoing revenues would be enough to pay the cops and firefighters and repair the streetlights and cut grass and foreclose on unpaid property taxes (which could then be used to provide low cost housing for tens or even hundreds of thousands of homeless people).
Not to mention getting rid of the E.M. and giving control back to the elected officials. No financial emergency means no need for an emergency financial manager.