DETROIT (WXYZ) - Now the latest on Detroit’s bankruptcy - the largest unsecured creditor, the city's general employee pension board is meeting behind closed doors right now with attorneys plotting strategy for bankruptcy court.
Will it be contentious?
It could and that's because the emergency manager wants the bankruptcy judge to form a committee of retiree creditors.
The closed door session is still going on.
Attorneys are here talking with the board members of the general retirement system. There's a separate police and fire pension system. Both are underfunded by $3.5 billion.
The discussion is in a close session. We had to leave.
The main attorney did tell me he will be filing this afternoon a response to emergency manager Kevyn Orr wanting the judge to appoint a retiree creditors committee to negotiate cuts to pensions and retiree health care. That is also underfunded by $6 billion.
The concept could be a fight over proper representation.
The bankruptcy judge, Steven Rhodes, also put out a tentative schedule that will be discussed on Friday
The key dates?
A trial on whether Detroit is eligible for bankruptcy on October 23.
And if it moves forward, the city's restructuring plan to be filed with the court March 1st of next year.
So this could move quickly. But legal challenges can also slow it down.
Thirty-two thousand retired and active Detroit city workers stand to lose billions.
We'll have more on all of this later.
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