(AP MODIFIED) - A tabulation of votes by Detroit retirees shows they overwhelmingly support the Bankruptcy Plan of Adjustment.
The approval comes from 82 percent of the Police and Fire System, 73 percent of the General Retirement System and 88 percent of the Retiree Health Care System.
The actual vote counts tabulated are:
Class 10 (Police and Fire System) 82.17% or 5,822 votes to accept, 17.83% or 1,263 votes to reject
Class 11 (GRS) 73.15% or 6,248 to accept, 26.85% or 2,293 to reject
Class 12 (OPEB, retiree health care claims) 88.25% or 9,201 to accept, 11.75% or 1,225 to reject.
The votes to accept were bolstered by the so-called grand bargain that softens pension cuts and saves the Detroit art collection held at the Detroit Institute of Arts from being sold. About $816 million now goes into the pension systems from foundations and the state.
Several other creditors in other voting classes have voted 'no' according to the tabulated results filed with the court Monday night.
This is considered a major step for Detroit as the city will now move through a trial on confirmation of the Plan of Adjustment that is set to start on August 14 and last a month. It is still expected to be contentious with Wall Street creditors who could lose hundreds of millions of dollars. Some of them may go bankrupt, according to experts monitoring the Detroit case.
Detroit Emergency Manager Kevyn Orr released a statement late Monday night: “The voting shows strong support for the City’s plan to adjust its debts and for the investment necessary to provide essential services and put Detroit on secure financial footing,” said Orr. “I want to thank City retirees and active employees who voted for casting aside the rhetoric and making an informed positive decision about their future and the future of the City of Detroit.”
Approval of the Plan of Adjustment also means retirees give up their right to fight their pension cuts. The Michigan Constitution protects public employee pensions against cuts.
Late Monday night, Michigan Attorney General Bill Schuette released a statement saying he respects their decision. Schuette does not say he will drop his appeal on behalf of retirees that is set to be heard before the 6th Circuit Court of Appeals in Cincinnati on July 30. Hundreds of individual retirees still object to the plan. Some involved in the case believe the appeal will now be put on hold.
VIEW VOTE TABULATION BELOW: