Posted on 10/29/2013 4:20:25 PM PDT by Libloather
Detroit Emergency Manager Kevyn Orr said Tuesday he could force a legally binding settlement on the city's creditors if they were unwilling to accept a proposed restructuring plan in bankruptcy court.
The "cram down" provision of federal bankruptcy law allows a judge to approve a plan of restructuring over the objections of creditors, so long as at least one impaired class of creditors votes to confirm it.
(Excerpt) Read more at nbcnews.com ...
Let us this happens after Halloween, just sayin’....
cram down would be on businesses that worked with the city, not the unions....I’m sure the last bunch of Detroit taxpayers will still be on the hook for long ago retired cops, firemen, etc....
He’ll have to get a “judge” to agree to it, and that’s not a sure thing lately in that District.
Remember, it’s not Liberalism we should blame but the actual Liberals themselves that did this. They are culpable. They have ruined lives. I want my money back. I want retribution.
So I guess defaulting on your debts is okay with Democrats now? During the Shutnado, that was supposed to be a disaster.
No more OK than continuing to loan money to a city that would never pay it back with every intention that the taxpayers would pick up the tab in the end.
Nobody is innocent in Detroit.
cram down is used to deal with creditors who simply want to be annoying to get a prefered deal.
This is just sloppy journalism.
Interesting article from June:
http://www.usatoday.com/story/news/nation/2013/06/03/detroit-asset-sales-financial-woes/2384525/
Detroit’s treasure trove could be vulnerable to sale(6/3/13 USA Today)
It starts listing assets and begins with this:
DETROIT — A healthy, breeding female giraffe from the Detroit Zoo could fetch $80,000 on the open market.
Detroit’s half of the Detroit-Windsor Tunnel was valued a few years ago at $65 million.
(Link USA Today)
Sell all assets!
Pensions will be getting sixteen cents on the dollar.
This is definitely a show worth popping up a few batches of popcorn. So even if the unions and pension funds “win” and there’s no formal bankruptcy, then what? They sue Detroit? What will that get them? Nothing? The keys to a bankrupt city?
It’s not like Detroit can suddenly print its own money to pay its billions in outstanding obligations if they are denied the right to proceed with the bankruptcy. And they’ve already entered the taxation death spiral, where raising rates brings in less money.
I guess the lawyers will get a bunch of money, but that’s about it. Like i said, popcorn. And lots of it.
16 cents on the dollar sounds about right to me. These “public” workers voted for these politicians for decades. Now let them reap the fruits of those votes. I don’t care if they starve.
I’m with you. The union members aren’t innocent but they aren’t nearly as guilty as those who knowingly made unsustainable offers.
People get their jollies laughing at Detroit but they’re only whistling past the graveyard and will be horrified at bills coming due elsewhere that make Detroit’s $20 billion look like chump change.
I’d love to see a few political types swinging from lamp posts over this, but you can’t absolve the workers. If a guy is too stupid to do some basic math he shouldn’t be driving a bus, carrying a gun and a badge, working ont the water supply, or even picking up my trash.
Nope, the blame here is split evenly in my view.
Next up, Chicago?
how this is legal is a sham.
give one class of creditors a decent payoff, they approve it and the rest get screwed. makes no sense.
Chicago recently got a credit downgrade which effectively makes the debt grow faster. (Some $93 billion if I recall)
I’d be more apt to give a creditor a better payout if they cut the cord sooner.
Everybody knew what was coming 20 years ago and the creditors didn’t continue to loan money out of the goodness of their hearts.
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