Monday, July 22, 2013

WSJ: Detroit Bankruptcy, Others To Follow! Expert: Detroit Bankruptcy Could Set Legal Precedent For Bankrupt Cities With Pension Obligations

The fun starts at 2:15. She starts pointing at other cities.

Why even bankruptcy can’t save Motown. Plus, Florida Sen. Marco Rubio on ‘extremist’ Thomas Perez’s confirmation as Labor Secretary, how the IRS scandal reached Washington and, Virginia Gov. McDonnell’s undisclosed gifts.
Detroit Bankruptcy Could Set Legal Precedent For Bankrupt Cities With Pension Obligations, Experts Say
DETROIT — Pensioners across the country have reason to watch Detroit’s historic bankruptcy filing closely. The legal wrangling over whether the city’s filing is unconstitutional may have widespread impact on cities in crisis across the United States.
Detroit Emergency Manager Kevyn Orr says the city’s crippling lack of services and devastating population loss can’t be fixed without bondholders, banks, unions and even retirees settling for less money than they are legally owed. With the blessing of Gov. Rick Snyder, a Republican, Orr filed for bankruptcy at 4:06 p.m. on Thursday — just five minutes before Circuit Court Judge Rosemary Aquilina was set to consider an injunction from pension groups and retirees to stop the city from filing the paperwork.
When a corporation files for bankruptcy, any pending litigation filed against the company is halted immediately. All lawsuits are dismissed, and creditors must appear before a bankruptcy judge in federal court to plead their cases.
http://www.huffingtonpost.com/2013/07/21/detroit-bankruptcy-legal-precedent_n_3629018.html

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