Detroit proposes bankruptcy plan by Dec. 31 - New York News

Detroit proposes bankruptcy plan by Dec. 31

Posted: Updated:
  • Detroit BankruptcyMore>>

  • Schuette endorses Detroit art deal in bankruptcy

    Schuette endorses Detroit art deal in bankruptcy

    Tuesday, June 17 2014 1:47 PM EDT2014-06-17 17:47:06 GMT
    Michigan Attorney General Bill Schuette has given his blessing to a deal that transfers control of art to the Detroit Institute of Arts.
    Michigan Attorney General Bill Schuette has given his blessing to a deal that transfers control of art to the Detroit Institute of Arts.
  • Detroit files plan to fix debt, leave bankruptcy

    Detroit files plan to fix debt, leave bankruptcy

    Friday, February 21 2014 12:49 PM EST2014-02-21 17:49:57 GMT
    Detroit's emergency financial manager filed a plan Friday that would bring the city out of bankruptcy, providing a detailed look at what the Motor City would look like when it finally sheds its financial burdens.
    Detroit's emergency financial manager filed a plan Friday that would bring the city out of bankruptcy, providing for the first time a detailed look at what the Motor City would look like when it finally sheds its financial burdens.
  • Gov. Snyder: 'Detroit's comeback is underway'

    Gov. Snyder: 'Detroit's comeback is underway'

    Friday, February 21 2014 11:35 AM EST2014-02-21 16:35:28 GMT
    Gov. Rick Snyder issued the following statement today on the filing of a plan of adjustment by  Detroit Emergency Manager Kevyn Orr that is part of the city's restructuring.
    Gov. Rick Snyder issued the following statement today on the filing of a plan of adjustment by  Detroit Emergency Manager Kevyn Orr that is part of the city's restructuring under Chapter 9 of the U.S. Bankruptcy Code.
DETROIT (AP) -

By the end of the year, Detroit wants to submit a plan to emerge from bankruptcy, an attorney said Friday, an aggressive timetable that's two months earlier than a judge proposed for a city hoping to shed billions of debt.
 
U.S. Bankruptcy Judge Steven Rhodes held the second hearing since Detroit became the largest city to file for Chapter 9 protection two weeks ago. It mostly was a housekeeping docket, with key deadlines and dates discussed, but also served as a forum for Rhodes to encourage all sides to keep talking about ways to settle debts.
 
Detroit claims it has at least $18 billion in liabilities, from underfunded pensions and health care costs to bonds that lack city revenue to be paid off.
 
Rhodes gave creditors a week to privately file opinions on the appointment of a mediator, Detroit chief federal judge Gerald Rosen, but said he strongly believes it's a good idea.
 
"Consensual resolution is in the best interest of the citizens of the city of Detroit," Rhodes said, adding that it could be hard for a "strong, vibrant" city to emerge if the parties turn to "long, bitter litigation."
 
A deal is "better than a cram-down" from the court, the judge said later.
 
David Heiman, an attorney for Detroit, agreed and said the city and some unsecured creditors have been talking regularly, although significant differences remain. He said the city hopes to submit a plan by Dec. 31 to emerge from bankruptcy.
 
"Our view is that time is our enemy," Heiman said. "The facts are not going to change."
 
Nonetheless, there still are many hurdles.
 
Rhodes, for example, has to determine whether Detroit is even eligible for bankruptcy. Creditors will have an opportunity to argue that the city hasn't negotiated in good faith. A multi-day trial on the eligibility question has been proposed for Oct. 23.
 
And there's another critical issue: Michigan's constitution bars breaking public pensions, which are a key part of the city's liabilities. Rhodes agreed that a committee should be formed to represent the interests of more than 20,000 Detroit retirees. The committee will have a professional staff, and the city will foot the bill.
 
Babette Ceccotti, an attorney for the United Auto Workers, said key dates proposed by Rhodes "might be too aggressive." And a lawyer who represents Detroit's pension funds said mediation could be too early without a better look at the city's finances.
 
"We want to caution against expediency merely for the sake of expediency. ... The stakes are high," Robert Gordon told Rhodes.
 
The judge opened the hearing in an unusual way, declaring to the public that he doesn't run Detroit. It wasn't clear what motivated him to make the statement.
 
"The city's elected and appointed officials remain in full control of the city and its operations," Rhodes said, adding that any complaints or compliments should go to City Hall.
 
Detroit is being run by emergency manager Kevyn Orr, a bankruptcy specialist appointed in March by Michigan Gov. Rick Snyder.
 
------
 
Follow Ed White at twitter.com/edwhiteap  

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • Local NewsLocal NewsMore>>

  • NJ girl accidentally kills gun instructor

    NJ girl accidentally kills gun instructor

    Tuesday, August 26 2014 7:12 PM EDT2014-08-26 23:12:52 GMT
    A 9-year-old girl from New Jersey accidentally killed an Arizona shooting instructor as he was showing her how to use a fully automatic Uzi, authorities said Tuesday. Charles Vacca, 39, of Lake Havasu City, died Monday shortly after being airlifted to University Medical Center in Las Vegas, Mohave County sheriff's officials said.
    A 9-year-old girl from New Jersey accidentally killed an Arizona shooting instructor as he was showing her how to use a fully automatic Uzi, authorities said Tuesday. Charles Vacca, 39, of Lake Havasu City, died Monday shortly after being airlifted to University Medical Center in Las Vegas, Mohave County sheriff's officials said.
  • Fighting street harassment

    Fighting street harassment

    Tuesday, August 26 2014 6:37 PM EDT2014-08-26 22:37:24 GMT
    New York City women are tired of hearing vile things yelled at them as they walk down the street. Many women are going public about street harassment and catcalling. Some even post picture of their offenders on social media. Founded in 2005, Hollaback! is an anti-harassment organization giving women a platform to do just that.
    New York City women are tired of hearing vile things yelled at them as they walk down the street. Many women are going public about street harassment and catcalling. Some even post picture of their offenders on social media. Founded in 2005, Hollaback! is an anti-harassment organization giving women a platform to do just that.
  • Street Stories

    NYC homelessness and panhandling

    NYC homelessness and panhandling

    Tuesday, August 26 2014 5:08 PM EDT2014-08-26 21:08:08 GMT
    Homeless people still sleep under the Manhattan Bridge, but others who used to camp out near its base have been displaced by police and are now calling Park Avenue South home. Park Avenue South sits in one of the trendiest parts of Manhattan, with businesses, restaurants, hotels, and swank lofts. It's also the street corner home base of Tommy Lanfranchi and his domestic partner Nicole Kilroy, who've been in a methadone program for 10 years.
    Homeless people still sleep under the Manhattan Bridge, but others who used to camp out near its base have been displaced by police and are now calling Park Avenue South home. Park Avenue South sits in one of the trendiest parts of Manhattan, with businesses, restaurants, hotels, and swank lofts. It's also the street corner home base of Tommy Lanfranchi and his domestic partner Nicole Kilroy, who've been in a methadone program for 10 years.
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 | New Terms of Service What's new | Ad Choices