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Judge to decide whether Detroit can enter Chapter 9

  • U.S. Bankruptcy Judge Steven Rhodes is due to decide today on whether Detroit is eligible for bankruptcy protection.
  • Should Rhodes approve Detroit's request, the city would be protected from lawsuits in several courts, including over a plan to cut retiree benefits. It would also prevent creditors from suing to seize assets after Detroit defaulted on loan payments.
  • Meanwhile, Illinois' House and Senate are set to vote on a proposed overhaul of the state's retirement system, one of the most underfunded in the country with a gap of almost $100B.
  • The measures would save an estimated $160B over 30 years with cuts for workers and retirees but would fully fund the state's five pension systems by 2044. However, unions are deeply opposed to the legislation and its passage is not certain.
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Comments (2)
  • rambler1
    , contributor
    Comments (656) | Send Message
     
    How is 1 man supposed to judge whether an entire city can enter Detroit? The pressure from both sides must be incredible, and I can imagine threats. This thing needs to go into bankruptcy & allowed to rewrite retirement rules & payouts. Detroit needs it and so do thousands of other municipalities around the country. An example must be made because the burden is just too high.
    3 Dec 2013, 08:09 AM Reply Like
  • Mattster
    , contributor
    Comments (164) | Send Message
     
    When are they going to add Detroit to the emerging markets index?
    3 Dec 2013, 09:14 AM Reply Like
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