DETROIT (CBSDETROIT/AP) – Banks, bond insurers, employee pension systems and others who believe they are owed money by the city of Detroit are up against the clock to legally voice opposition to the largest municipal bankruptcy filing in U.S. history.

Monday is the eligibility objection deadline in the bankruptcy petition by Detroit Emergency Manager Kevyn Orr.

It’s one step in a process that could take months or years to complete if Detroit is approved for bankruptcy protection.

If a federal judge declares the city insolvent, Detroit’s creditors stand to lose big. Detroit emergency manager Kevyn Orr stopped payment on $2.5 billion in debt in June … and asked more than 100 creditor representatives to take pennies on the dollar.

Monday’s filing deadline will mark the start of legal challenges for those hoping to recoup all or most of what the city owes them. The city has until September 6th to file its responses to objections by creditors, which number in the thousands.

Copyright 2013 by STATS LLC and The Associated Press. Any commercial use or distribution without the express written consent of STATS LLC and The Associated Press is strictly prohibited.


Leave a Reply

Please log in using one of these methods to post your comment:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Detroit

Best Cooking Classes In DetroitLearn how to whip up some wonderful dishes while having fun!
5 Bucket List Items To Cross Off In DetroitThe “must-do” items for anyone making a trip to Detroit.

Watch & Listen LIVE