The Craig Fahle Show

Bankruptcy Update: Detroit Water, Plan of Adjustment & More

Thursday, July 31, 2014

Detroit’s bankruptcy trial was delayed by a week, but that doesn’t mean there is a shortage of other developments. WDET's Bankruptcy Reporter and Next Chapter Detroit Blogger Sandra Svoboda chats with Detroit Free Press Reporter Nathan Bomey about the schedule, the latest Plan of Adjustment, how the Detroit Water and Sewerage Department issues became part of the court proceedings and other issues that are part of the historic case.

Here are a few excerpts of their conversation:

On the trial start date being moved to Aug. 21:

“The judge did not extend the length of the trial so it still ends Sept. 23. It actually means that overall it’s a little bit shorter than we had expected,” Nathan says. “As settlements come in and as they get some details worked out in the restructuring, it was likely that they wouldn’t need quite as much time as they set out at the beginning.”

On the latest Plan of Adjustment:

“They say they don’t need a plan monitor because they’re simply going to rely on the state-appointed financial review commission which will provide the oversight for over a decade,” Nathan says. “If you look at the details, they have a lot of power. They can essentially stop the city from overspending and borrowing too much. .. I think there is a consensus in Lansing that Detroit will need oversight long after the emergency manager is one.”

On how the Detroit Water and Sewerage Department issues have become part of the bankruptcy proceedings:

“The DWSD has had no shortage of headlines. The shutoffs even drew the attention of the bankruptcy judge who in a hearing about two weeks ago … had Deputy Director Darryl Latimer come in a couple of times … and that was where they announced the 15-day moratorium on the shutoffs,” Sandra says.

“It sounds like Kevyn Orr just doesn’t want to have anything to do with it anymore,” Nathan says.

Find more coverage of Detroit's bankruptcy and its impact on people and neighborhoods on WDET's Next Chapter Detroit blog.

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