10 key questions to watch for at Detroit’s historic bankruptcy trial Here are 10 crucial questions to track during Detroit’s historic bankruptcy trial before Judge Steven Rhodes, who will examine hundreds of exhibits and hear testimony from potentially more than 80 witnesses before deciding whether the city’s plan of adjustment can proceed: 1. Is the city’s $1.4-billion, 10-year plan to reinvest in services realistic? Rhodes has emphasized that the city must emerge from Chapter 9 bankruptcy with a sensible and comprehensive plan to restore basic services to the city’s neglected neighborhoods. But several witnesses are expected to testify that the $1.4 billion is not all guaranteed money. “I think it’s likely the judge will find the plan feasible even if he expresses concerns,” Wayne State University bankruptcy law professor Laura Beth Bartell said. ■ Related: Detroit’s bankruptcy battle begins: Trial to decide city’s fate ■ Related: Is Detroit’s plan feasible? Leaders must show they’re committed to strategy ■ Full coverage: Detroit’s financial crisis 2. Is the city’s plan to pay bond insurers Syncora and Financial Guaranty Insurance Co. (FGIC) significantly less than pensioners fair? The insurers argue the plan amounts to unfair discrimination. Although bankruptcy law allows unsecured creditors to get different treatment, there must be legal justification to do so. [...] newsinmi/10-key-questions-to-watch-for-at-detroits-historic-bankruptcy-trial/
Posted on: Sun, 31 Aug 2014 06:45:08 +0000