Judge sets June trial on Detroit bankruptcy plan

Judge sets June trial on Detroit bankruptcy plan

Posted: Updated:

A judge has set a June 16 trial on Detroit's plan to emerge from bankruptcy.

U.S. Bankruptcy Judge Steven Rhodes also says he is giving creditors until March 28 to file objections to the plan released last week by Detroit emergency manager Kevyn Orr.

Rhodes is encouraging all sides to negotiate with "full intensity and vigor" to resolve any disputes before they land in court.

Under Detroit's plan, pension holders could expect to get 70 percent to 90 percent of what they are owed, while many banks would receive as little as 20 percent.

Detroit retirees and community leaders presented an alternative plan Monday which gives more percentages to pensioners, who feel they are being "scapegoated."

ALSO SEE: Detroit retirees, community leaders submit alternative bankruptcy plan

Orr's plan also puts more than one billion dollars towards capital improvements. Emergency manager spokesperson Bill Nowling says almost half of that amount would be put towards blight removal, which would happen in the first five years.

Part of that billion dollars would also upgrade Detroit's bookkeeping technology. Nowling says some of the systems used are 20 years old.

The city also plans to use millions in federal tax dollars to tear down thousands of publicly-owned residential buildings.

VIDEO: Click on the video player above to learn more about the plan in a report from FOX 2's Randy Wimbley

Many issues are still unsettled, especially Gov. Rick Snyder's proposal for the state to kick in $350 million toward pensions. Lawmakers haven't signed on yet.

The plan also still needs the stamp of approval from Judge Rhodes.

-The Associated Press contributed to this report

  • Download the FOX 2 Apps

  • FOX 2 News Five-Day Forecast
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices