The Craig Fahle Show

Bankruptcy Update: Amended Plan Of Adjustment

Tuesday, May 6, 2014

Photo courtesy of Bankruptcy reporter and Next Chapter Detroit blogger Sandra Svoboda joins Craig to recap the city's amended, and potentially final, Plan of Adjustment and Disclosure Statement presented to the courts yesterday. Bankruptcy Judge Steven Rhodes issued an order approving both documents, and now it's time to turn the updated plan over to voters for approval. The representatives of various pensioner groups have agreed on a 4.5 percent cut and an overall package that provides city employees with a lot more than what was presented in past versions of the plan. However, Svoboda explains that many Detroit pensioners are still arguing they shouldn't take a hit at all. Craig and Sandra discuss the details of the latest package and what may be in store for bond insurers and city pensioners later this year.