Companies that insure Detroit bonds and stand to lose millions repeated a pledge to aggressively challenge the city’s bankruptcy plan, a day after retirees endorsed pension cuts and qualified for a bailout led by the state.
A judge still must hold a trial to determine if Detroit’s overall bankruptcy plan is fair and feasible, but support from retirees is vital.
The city of Detroit promised to report the results of voting on pension cuts Monday but declined to disclose the numbers during a morning bankruptcy hearing.
While there are many moving parts to the restructuring, the pension agreement is viewed as a centerpiece.
“Kevyn Orr is in the governor’s office right now, calling in individual lawmakers, trying to explain why they need to vote yes,”
The details were in Detroit’s latest strategy plan filed Monday.
Kevyn Orr is in Lansing updating lawmakers on the city’s bankruptcy as they consider a potential vote on a financial bailout to help Detroit emerge from insolvency.
“We didn’t have that on our list of conditions,” the governor told reporters in Lansing Wednesday.
Trustees meeting Wednesday supported a deal reached Tuesday between negotiators and the city of Detroit.
Pressure is building for Michigan lawmakers to commit $350 million to Detroit pensions after the bankrupt city.