Not a Lexis+ subscriber? Try it out for free.


Creditors Object to Detroit Bankruptcy

 Scores of retirees and creditors, including the American Federation of State, County and Municipal Employees, have challenged Detroit's historic Chapter 9 bankruptcy filing, arguing that it is unconstitutional because it could be used to slash retiree pensions and that Emergency Manager Kevyn Orr didn't negotiate in good faith with creditors before filing for bankruptcy in July. 
"The City, led by its unelected, politically appointed Emergency Manager, Kevyn D. Orr, hastily commenced this unconstitutional, unlawfully authorized chapter 9 proceeding seeking the haven of bankruptcy to illegally attempt to slash pension and other post-employment benefit obligations and cram such reductions down the throats of current and former City employees," Sharon Levine, an attorney for the AFSCME, the city's largest union, wrote in a court filing." 
Chief U.S. District Court Judge Gerald Rosen, the head mediator in Detroit's bankruptcy, has assigned Portland, Oregon-based U.S. Bankruptcy Judge Elizabeth Perris to mediate the dispute between the city and its creditors. A former bankruptcy appeals judge, Perris has evidently been instrumental in mediating the municipal bankruptcy in Stockton, California. 
"She has been invaluable in the [Stockton] case and we have reached some agreements with her help," said Marc Levinson, an attorney for the city. "I'm a huge believer in mediation generally and Judge Perris in particular." (DETROIT NEWS, STATE NET) 

The above article is provided by the State Net Capitol Journal. State Net is the nation's leading source of state legislative and regulatory content for all states within the United States. State Net daily monitors every bill in all 50 states, the District of Columbia and the United States Congress - as well as every state agency regulation. Virtually all of the information about individual bills and their progress through legislatures is online within 24 hours of public availability.

To subscribe to the Capitol Journal and access archived issue go to the State Net Capitol Journal

If you are a subscriber, you can access State Net Bill Tracking, State Net Full Text of Bills, or State Net Regulatory Text. If you are interested in learning more about State Net, contact us.

For more information about LexisNexis products and solutions connect with us through our corporate site.