Detroit bankruptcy moving forward, mostly behind closed doors

DETROIT (WXYZ) - Detroit's bankruptcy case is moving forward but most of it is happening behind closed doors. 

One attorney representing the city, Bruce Bennett of Jones Day told Judge Steven Rhodes during a brief status conference in court that a revised Plan of Adjustment would be filed by the city next week. 

Detroit retirees and the two pension systems were summoned to be in closed mediation today and those sessions could run through Tuesday and Wednesday as needed. Top aides to Governor Rick Snyder may also be involved in mediation.

There were no discussions in court about the status of the deal to provide as much as $800 million to retirees while saving art at Detroit Institute of Arts. 

There were no discussions on other pending issues like a possible sale or lease of the Detroit Water and Sewerage Department to a regional authority. Judge Rhodes then asked attorneys to move into a closed status conference in another room. 

The Detroit plan could be changed at the last minute to reflect any settlements reached in mediation. Detroit has $18 billion in debt and city employee pension under-funding is set at $3.5 billion.

There were no discussions in court about the status of the deal to provide as much as $800 million to retirees while saving art at Detroit Institute of Arts. 

There were no discussions on other pending issues like a possible sale or lease of the Detroit Water and Sewerage Department to a regional authority. 

Judge Rhodes then asked attorneys to move into a closed status conference in another room. The Detroit plan could be changed at the last minute to reflect any settlements reached in mediation. 

Detroit has $18 billion in debt and city employee pension under-funding is set at $3.5 billion.

Print this article Back to Top