by Lisa Lambert & Karen Pierog
Detroit could be on the fast track to complete the final, crucial phase of its historic bankruptcy case, as settlements with key creditors line up and city workers and retirees demonstrate overwhelming support for cost-saving retirement benefit changes.
While a small, hard-core group of creditors continues to hold out for a better deal, the support among workers and retirees may help push through the city's plan to adjust $18 billion of debt and exit the biggest Chapter 9 municipal bankruptcy in U.S. history. It has moved the possibility of a "cram down," where a bankruptcy plan is imposed on objecting creditors, to center stage.
"To be candid, I've always thought at the end of the day what choice does Judge (Steven) Rhodes have but to confirm this plan?" said Randye Soref
, a senior partner at law firm Polsinelli in Los Angeles. "What happens if he doesn't? What's the alternative?"
To read the full article, click here