Comment on Detroit raced toward this week's bankruptcy trial

Detroit raced toward this week's bankruptcy trial

DETROIT (AP) — It took decades of mismanagement, malfeasance and meltdowns in its bread-and-butter manufacturing sector for Detroit to hit fiscal rock bottom. After some delays, the confirmation trial for the largest municipal bankruptcy in U.S. history is scheduled to start Tuesday. Massive debt, thousands of creditors and complex union and pension issues had many experts thinking Detroit's bankruptcy would take years to resolve, considering two California cities — Stockton and San Bernardino — filed a year before Detroit did and still haven't settled on plans. Detroit expects to cut $12 billion in unsecured debt to about $5 billion, which is "more manageable," according to Bill Nowling, a spokesman for emergency manager Kevyn Orr. To reduce cuts to pensions and keep artwork off the auction block, the city will get a hand from the state, major corporations, foundations and others through donations of more than $800 million over 20 years. Pension officials worked long hours in mediation to reach that settlement, said Bruce Babiarz, Police and Fire Retirement System spokesman.

 

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