What's Next In Detroit Bankruptcy - FOX 10 News | fox10phoenix.com

What's Next In Detroit Bankruptcy

Posted: Updated:

by ELIZABETH PRANN
Washington, DC.

Now that the city of Detroit has filed a historic bankruptcy involving more than $18 billion in debts that officials say have been piled up over 60 years, what's next?

The process will be a lengthy one. It will involve more than 100,000 creditors, including the police and fire retirement system, as well as the city's 20,000 general retirees and emergency managers.

Kevyn Orr says all city workers, including current and retired, could see pensions cuts.

"We are going to have a dialogue with pension funds about what we can do. And they are two different funds police and fire and general services and they may have different levels of funding," says Orr, a bankruptcy expert hired by the state.

Reports say pension holders plan to make the argument that the governor cannot impose a Chapter 9 filing that would effect pensions.

Orr has called on a federal bankruptcy judge to appoint a committee to represent the retiree interests.

Any federal resources, however, are already strained. The national debt remains well over $16 trillion and the federal government is struggling under automatic spending cuts.

The mayor says the city has to set a benchmark on how to come back from this tragedy and they're monitoring the federal response.

"Now that we've done our bankruptcy filing, I think we need to take a step back and see what's next. There's a lot of conversations, planning and negotiations that will go into fixing our city," says Mayor David Bing.

The president and members of his team continue to closely monitor the situation in Detroit, but they've given no indication that a bailout is on the agenda.

  • Local NewsMore>>

  • PECO Investigating Gas Odor in Phila Region

    PECO Investigating Gas Odor in Phila Region

    Saturday, August 30 2014 10:15 PM EDT2014-08-31 02:15:46 GMT
    A spokesperson for PECO confirms to Fox 29 News that crews are trying to find the source of a gas odor that has resulted in hundreds of calls to PECO on Saturday.About 400 calls have been placedto PECO as of 4pm Saturday; that is an elevated number of calls than a normal day, the spokesperson says. Crews that are trained in gas odor response are spread throughout the area to try to pinpoint the source of the odor. Reports of gas odors have been made by customers in Delaware, Montgomery, Chest...
    A spokesperson for PECO confirms to Fox 29 News that crews are trying to find the source of a gas odor that has resulted in hundreds of calls to PECO on Saturday.About 400 calls have been placedto PECO as of 4pm Saturday; that is an elevated number of calls than a normal day, the spokesperson says. Crews that are trained in gas odor response are spread throughout the area to try to pinpoint the source of the odor. Reports of gas odors have been made by customers in Delaware, Montgomery, Chest...
  • Students Prepare To Return To School With Free Supplies

    Students Prepare To Return To School With Free Supplies

    Saturday, August 30 2014 6:15 PM EDT2014-08-30 22:15:25 GMT
    We all know Labor Day Weekend is the unofficial end of summer, but it also mean something else...back to school.
    We all know Labor Day Weekend is the unofficial end of summer, but it also mean something else...back to school.
  • Summer Heat Returns

    Saturday, August 30 2014 4:11 PM EDT2014-08-30 20:11:25 GMT

    The rest of the holiday weekend continues to look warmer and unsettled. Shower and thunderstorm chances increase late Sunday and Labor Day.

    The heat and humidity will continue to expand Sunday into Labor Day. There is a risk of scattered showers and thunderstorms both day.  Best chance will be in the afternoon and evening. 

    Sunday (88/69): Clouds/Storm

    Monday (90/71): Clouds/Storm

    Tuesday (92/72): Clouds/Storm

     

     

Powered by WorldNow

KSAZ-TV & KUTP
511 W. Adams St.
Phoenix, AZ 85003

Phone: (602) 257-1234
Fax: (602) 262-0177

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices