News Column

Several issues could be resolved today at extensive bankruptcy hearing

June 26, 2014

By Joe Guillen, Detroit Free Press



June 26--A possible bus tour for bankruptcy Judge Steven Rhodes to witness Detroit's blight and a creditor's request for the personal financial information of Detroit retirees are among the topics to be covered today during an extensive hearing in Detroit's historic bankruptcy case.

The hearing also will cover Attorney General Bill Schuette's request for Rhodes to block a subpoena that would force him to testify about why he wrote an opinion asserting that the Detroit Institute of Arts property cannot be sold in the city's bankruptcy.

These issues and others could be resolved today as the bankruptcy court prepares for an epic trial scheduled to start Aug. 14 to confirm Detroit's plan to restructure debts of about $18 billion. The trial is expected to stretch through Sept. 23.

Several of the city's creditors protested the proposal to give Judge Rhodes a tour of Detroit's blight because they claim the concept is irrelevant to the trial and potentially misleading.

The pending request for statistics showing the total assets and income of individual city pensioners was filed by bond insurer Syncora, the city of Detroit's leading bankruptcy opponent.

Syncora's request is meant to build its case that financial creditors are being unfairly treated. By one count, Syncora stands to get about 6 cents on the dollar for its Detroit debt -- while pensioners will endure much smaller cuts under emergency manager Kevyn Orr's restructuring plan.

Contact Joe Guillen: 313-222-6678 or jguillen@freepress.com.

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(c)2014 the Detroit Free Press

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Source: Detroit Free Press (MI)


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