Thursday, Jun 21, 2018
One of America's Great Newspapers ~ Toledo, Ohio


Detroit proposes bankruptcy plan by Dec. 31

DETROIT  — Detroit says it wants to submit a plan to emerge from bankruptcy by year’s end, an aggressive timeframe two months earlier than a judge has proposed.

Attorney David Heiman told a judge today that “time is our enemy” and Detroit’s distressed finances “are not going to change.” Nonetheless, there are many hurdles still to overcome.

U.S. Bankruptcy Judge Steven Rhodes has to determine whether Detroit is eligible for bankruptcy. Creditors will have an opportunity to argue that the city hasn’t negotiated in good faith. There’s another issue: Michigan’s constitution bars breaking public pensions, which are a key part of the city’s liabilities.

A trial on the eligibility question has been proposed for late October. Detroit filed for Chapter 9 protection two weeks ago, citing debts of at least $18 billion.

Click to comment

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem?

Temporibus autem quibusdam et aut officiis debitis aut rerum necessitatibus saepe eveniet.

Copyright © 2018 Toledo Blade

To Top

Fetching stories…