Rhodes has scheduled dates into mid-October, if needed, to determine whether the city's plan is fair to creditors and feasible for the city. The judge will hear from city leaders, including Orr and Mayor
The strongest opposition to the plan has come from bond insurers, such as
That deal among the state, major corporations and foundations promises more than
AT THE BARGAINING TABLE
Creditors have been negotiating with the city to try to reach settlements. But given that they have been offered pennies on the dollar compared to the amounts promised pensioners, further deals are unlikely.
Rhodes can force the entire plan on creditors — even if some don't like it — because some significant creditors, notably some 30,000 city pensioners and employees, have already voted in favor of it as part of the Grand Bargain. Such a ruling is referred to in bankruptcy court as a "cram down."
He could also approve part of it and urge changes if he does not think parts will work. It could be a month or more after the trial for Rhodes to reach his decision, given the complexity of the case.
Regardless of how Rhodes rules, appeals are certain.
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