Detroit Bankruptcy Approved -Emergency Manager Threatens Pension Fund Takeover

Detroit Bankruptcy Approved

by Kerry Lutz, FinancialSurvivalNetwork.com:
As predicted many months, Detroit’s bankruptcy filing has been validated in a ruling by Bankruptcy Court Judge Steven Rhodes. He rejected numerous objections posed by unions, pension funds and retirees. They’re the big losers under any reorganization plan that scales back Detroit’s long-term liabilities.
As a Financial Survival Network listener you knew this day was coming. The decision, which will be appealed, will eventually allow the city to proceed with what is currently the largest public bankruptcy in U.S. history.
Rhodes said, “This once proud and prosperous city can’t pay its debts. It’s insolvent. It’s eligible for bankruptcy. At the same time, it also has an opportunity for a fresh start.” He said the bankruptcy should have been done years earlier.
Read More @ FinancialSurvivalNetwork.com

Detroit’s Emergency Manager Threatens Pension Fund Takeover; Blame the Unions

by Mike Shedlock, Global Economic Analysis:
Detroit’s emergency manager Kevyn Orr says a pension fund takeover is a “right, if not an obligation” after Orr learned of extra, unwarranted pension payments.
Please consider Emergency Manager Weighs Pension-Fund Takeover.

Kevyn Orr said in a recent interview that at the current pace, the city’s General Services System pension fund could lose its ability to pay pensions owed to current and future retirees within 12 years. A takeover is a “right, if not an obligation, that I have to consider under the statute, and we’re considering that right now,” he said.
Representatives of the pension board said Mr. Orr’s figures were faulty.