Detroit’s Proposed Plan of Adjustment – Two Crucial Questions

by Ben Feder The chapter 9 bankruptcy case of the City of Detroit has been as complex and litigious as anticipated . Nevertheless, Emergency Manager Kevyn Orr has kept plodding forward, and last week filed a proposed plan of adjustment , the road map for the Motor City to emerge from bankruptcy. There...

Stockton Judge: Pension Obligations Are Not Impervious to Impairment In Chapter 9 Bankruptcy. What Comes Next?

by Ben Feder The perception that public employee pension obligations cannot be impaired in bankruptcy suffered a damaging blow several months ago in the City of Detroit bankruptcy case , and has now been fatally wounded by the recent ruling of Judge Christopher Klein in the Chapter 9 case of Stockton...

Despite Earlier Ruling, Stockton Judge Confirms Plan Leaving Pension Obligations Intact

One month ago, Judge Christopher Klein ruled in the city of Stockton, CA bankruptcy case that public employee pension obligations can be impaired in municipal bankruptcy cases under Chapter 9 of the Bankruptcy Code. Last week, however, Judge Klein approved the plan of adjustment for Stockton that left...