Attorneys discuss status of Detroit bankruptcy case during court hearing

DETROIT (WXYZ) - Detroit's bankruptcy case is back in court today. 

Judge Steven Rhodes was told several depositions are scheduled over the next several days from experts about Detroit’s Plan of Adjustment to deal with $18 billion in debt. 

The votes on the plan from retirees and active employees will be given to the court no later than next Monday. The city is still negotiating with firefighters. 

The big trial on confirmation of the plan is set for August 14. 

Later this afternoon, the judge will hold a closed session with attorneys to schedule a private, closed bus tour. City attorneys want the judge to see first-hand how the Plan of Adjustment will improve the city after bankruptcy.

An attorney for Syncora, a Wall Street bond insurer which stands to lose hundreds of millions told the judge he's still waiting for detailed documents on recent collective bargaining agreements with city employees and settlements about Detroit’s art collection. 

He also said they plan to appeal Friday’s ruling that casino taxes go to the city, and is not available to creditors who loaned the city $1.4 billion in 2006 to make pension fund payments, and backed them with casino revenue as collateral.

The city plans to file an amended Plan of Adjustment this week, which will include detailed disclosures on recent settlements. 

The judge has set next Monday, July 21 for another status conference.

Print this article Back to Top

Comments