Loading…
Monday, April 21, 2014
Current Weather
Loading Current Weather....
HomeNewsState
Published: 8/2/2013 - Updated: 8 months ago

Detroit proposes bankruptcy plan by Dec. 31

ASSOCIATED PRESS

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.



Guidelines: Please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. If a comment violates these standards or our privacy statement or visitor's agreement, click the "X" in the upper right corner of the comment box to report abuse. To post comments, you must be a Facebook member. To find out more, please visit the FAQ.

Related stories




Poll