Detroit’s historic bankruptcy trial wrapped closing arguments on Monday. After hearing over two hours of arguments, U.S. Bankruptcy Judge Steven Rhode set a final ruling date for Nov. 7th.
According to report by Reuter.com:
The July 2013 bankruptcy filing was the city’s only avenue for addressing its fiscal woes, which included a big public pension burden, said Bruce Bennett, an attorney at law firm Jones Day who presented Detroit’s closing arguments. About 150 court-ordered mediation sessions helped bridge differences with creditors, he added.
“This plan is very broadly consensual at this point and the city has settled with all the objectors and all the major economic players in the city of Detroit,” Bennett said.
The city’s biggest financial risks would be to misspend $1.7 billion targeted for restructuring and reinvestment initiatives, ignore investments in capital projects and information technology, and allow public pension funding to slide once again, Bennett said, answering questions from Rhodes.
U.S. Bankruptcy Judge Steven Rhodes, who began the confirmation hearing on Sept. 2, said he will rule Nov. 7 on whether the 1,165-page plan is fair to creditors and feasible for the city to implement. The hearing will also address the plan’s implementation schedule.
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