Detroit files for bankruptcy

[WNYresident]

Detroit files for bankruptcy

Emergency Manager Kevyn Orr, appointed by Michigan Gov. Rick Snyder to oversee the city's finances, had been holding meetings with various creditors for the last five weeks in an effort to shed debt that the city can no longer afford. But despite the fact that some banks agreed to take reduced payments, Orr sought and received permission from Snyder to file.



Pension funds and retirees who fear deep cuts in promised benefits had filed suits to try to block a filing. Thursday's filing came before a hearing on the suits that was set for Monday.

http://money.cnn.com/2013/07/18/news...html?hpt=hp_t2

[WNYresident]

Cutting retiree's pensions in a municipal bankruptcy has never been done before, said Michael Sweet, a California bankruptcy attorney who is an expert in public sector bankruptcies.

"It's relatively easy to blow off a creditor. It's much harder when it's people who are the fabric of your community who you'll need going forward," he said. "You need a police force, you need a fire department. You're saying [to them] you're not worth what you were previously promised."

They are not saying "You're saying [to them] you're not worth what you were previously promised."

What you are saying is "You were promised too much to begin with and the client base disappeared"

Specially if they had employees playing games with pension padding creating unrealistic pension payouts compared to what the employees actually contributed.

Do you think there was the friends and family plans going on in Detroit as we hear about in Erie County?

[Save Us]

They are not saying "You're saying [to them] you're not worth what you were previously promised."

What you are saying is "You were promised too much to begin with and the client base disappeared"

Specially if they had employees playing games with pension padding creating unrealistic pension payouts compared to what the employees actually contributed.

Do you think there was the friends and family plans going on in Detroit as we hear about in Erie County?

Politicians should A. not NEED the job and B. be familiar basic check book balancing principles

We had two control boards....see above. .

[leftWNYbecauseofBS]

It's going to be interesting for sure to watch what unfolds here.

If they can find a way to come out of this a stronger city...watch out.

[Save Us]

It's going to be interesting for sure to watch what unfolds here.

If they can find a way to come out of this a stronger city...watch out.

It would be travesty if nothing is learned from this.

[WNYresident]

I really wonder what people who had a monopoly of services expects to happen when the "client" base leaves. Population loss, business loss and/or the changing of the make up of population.

WHen I say make up of population I mean when higher income people move out and low or no income people move in. People are people but different groups have different economic impact to the community they are in. Another issue is illegal immigration. Having many people speaking different languages adds to the cost of the community. Just think of the issue with grammar schools when you have 100's of kids of do not speak English. It all adds up.

[FMD]

Detroit is the tip of the iceberg! No one wanted to be first. Now the dominos will fall

[Riven37]

"We are moments away from changing America." How you like the change now?

[Mr. Lackawanna]

It is going to very interesting to hear how the Detroit unions will try to justify keeping their pensions intact.

[WNYresident]

Didn't Detroit have a pension fund like NYS has with billions of dollars in it? Doesn't that cover the ongoing pensions?

[dtwarren]

From: http://www.freep.com/article/2013071...pension-ingham

Aquilina did issue an order today restraining Orr and Snyder from taking additional actions that would harm the interests of the pension funds.

[dtwarren]

From The Detroit News: http://www.detroitnews.com/article/2...ace-courthouse

By 4:06 p.m., their efforts were moot. The City of Detroit had already filed the largest municipal bankruptcy in U.S. history — five minutes before Ingham County Circuit Judge Rosemarie Aquilina was set to convene a hearing.

After a brief delay, Aquilina said her law clerk confirmed a Chapter 9 bankruptcy filing had been made in federal court, effectively blocking any legal action against the city in that regard.

“It was my intention to grant you your request completely,” Aquilina told disappointed lawyers for Detroit’s pension boards, who also had come to court seeking an order to halt Snyder from authorizing a bankruptcy filing.

The judge did grant temporary restraining orders against Snyder and Orr from taking further action in the Chapter 9 proceedings, pending the outcome of lawsuits challenging whether Orr can use bankruptcy as a means to cut pensions for city retirees.

After the hearing, an attorney for the city’s pension boards expressed frustration with the governor’s office.

[WNYresident]

Detroit's population has fallen 28% since 2000. The unemployment rate, while down from a peak of 27.8% in the summer of 2009 -- when General Motors (GM, Fortune 500) and Chrysler Group were going through their own bankruptcies -- is still at 16.3%, nearly twice Michigan's statewide average.

28% less tax payers. As you raise property taxes to make up for the loss you cause even more people to move...

[Ileftchktg]

"We are moments away from changing America." How you like the change now?

Old rust belt cities like Buffalo.

[dtwarren]

From: http://www.usatoday.com/story/news/n...ional/2569481/

LANSING, Mich — An Ingham County judge says Thursday's historic Detroit bankruptcy filing violates the Michigan Constitution and state law and must be withdrawn.

But Attorney General Bill Schuette said he will appeal Circuit Judge Rosemarie Aquilina's Friday rulings and seek emergency consideration from the Michigan Court of Appeals. He wants her orders stayed pending the appeals, he said in a news release.