What's Next In Detroit Bankruptcy - New York News

What's Next In Detroit Bankruptcy

Posted: Updated:

by ELIZABETH PRANN
Washington, DC.

Now that the city of Detroit has filed a historic bankruptcy involving more than $18 billion in debts that officials say have been piled up over 60 years, what's next?

The process will be a lengthy one. It will involve more than 100,000 creditors, including the police and fire retirement system, as well as the city's 20,000 general retirees and emergency managers.

Kevyn Orr says all city workers, including current and retired, could see pensions cuts.

"We are going to have a dialogue with pension funds about what we can do. And they are two different funds police and fire and general services and they may have different levels of funding," says Orr, a bankruptcy expert hired by the state.

Reports say pension holders plan to make the argument that the governor cannot impose a Chapter 9 filing that would effect pensions.

Orr has called on a federal bankruptcy judge to appoint a committee to represent the retiree interests.

Any federal resources, however, are already strained. The national debt remains well over $16 trillion and the federal government is struggling under automatic spending cuts.

The mayor says the city has to set a benchmark on how to come back from this tragedy and they're monitoring the federal response.

"Now that we've done our bankruptcy filing, I think we need to take a step back and see what's next. There's a lot of conversations, planning and negotiations that will go into fixing our city," says Mayor David Bing.

The president and members of his team continue to closely monitor the situation in Detroit, but they've given no indication that a bailout is on the agenda.

  • Local NewsMore>>

  • muhlenberg-motel-fire

    Firefighters Battling Blaze In Muhlenberg Motel

    Firefighters Battling Blaze In Muhlenberg Motel

    Wednesday, April 23 2014 12:10 PM EDT2014-04-23 16:10:34 GMT
    Firefighters are battling flames and stiff winds at the scene of a multi-alarm motel fire in Berks County.
    Firefighters are battling flames and stiff winds at the scene of a multi-alarm motel fire in Berks County.
  • Police Warn Drivers After 2 Armed Carjackings In Camden

    Police Warn Drivers After 2 Armed Carjackings In Camden

    Wednesday, April 23 2014 11:17 AM EDT2014-04-23 15:17:23 GMT

    Police in Camden County are asking drivers to be alert after two carjackings since this weekend along one city street.

    Police in Camden County are asking drivers to be alert after two carjackings since this weekend along one city street.

  • Two Lancaster County Men Charged With Distributing Child Pornography

    Two Lancaster County Men Charged With Distributing Child Pornography

    Two Lancaster County Men Charged With Distributing Child Pornography

    Wednesday, April 23 2014 11:14 AM EDT2014-04-23 15:14:34 GMT
    The men are identified as 41-year old Hector Colon-Plaza and 60-year old Joseph FortunatoThe men are identified as 41-year old Hector Colon-Plaza and 60-year old Joseph Fortunato
    Lancaster Police arrested two men as part of ongoing efforts to target the online sharing, downloading and distribution of child pornography.The men are identified as 41-year old Hector Colon-Plaza and 60-year old Joseph Fortunato.
    Lancaster Police arrested two men as part of ongoing efforts to target the online sharing, downloading and distribution of child pornography.The men are identified as 41-year old Hector Colon-Plaza and 60-year old Joseph Fortunato.
  • Local NewsLocal NewsMore>>

  • Spy device live-Tweets private conversations

    Spy device live-Tweets private conversations

    Wednesday, April 23 2014 12:17 PM EDT2014-04-23 16:17:59 GMT
    A tiny new spy device aims to automatically live-Tweet overheard conversations. It's called Conversnitch.  Brian House and Kyle McDonald are behind the eavesdropping device.  They say it bridges the gap between (presumed) private physical space and public space online.
    A tiny new spy device aims to automatically live-Tweet overheard conversations. It's called Conversnitch.  Brian House and Kyle McDonald are behind the eavesdropping device.  They say it bridges the gap between (presumed) private physical space and public space online.
  • Toddler falls from 3-story window, not hurt

    Toddler falls from 3-story window, not hurt

    Wednesday, April 23 2014 10:42 AM EDT2014-04-23 14:42:24 GMT
    New York City police say a 2-year-old boy fell out of a third-story window overnight but was not hurt.
    New York City police say a 2-year-old boy fell out of a third-story window overnight but was not hurt.
  • De Blasio's carriage horse ban stalls

    De Blasio's carriage horse ban stalls

    Wednesday, April 23 2014 10:20 AM EDT2014-04-23 14:20:13 GMT
    Mayor Bill de Blasio is pulling back the reins on his plans to quickly get rid of New York City's horse-drawn carriage industry, stung by a recent outpouring of support for the colorful coaches that have clip-clopped their way through Central Park for more than 150 years. A campaign pledge to take on the horses during his first week as mayor was eclipsed by other issues.
    Mayor Bill de Blasio is pulling back the reins on his plans to quickly get rid of New York City's horse-drawn carriage industry, stung by a recent outpouring of support for the colorful coaches that have clip-clopped their way through Central Park for more than 150 years. A campaign pledge to take on the horses during his first week as mayor was eclipsed by other issues.
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices