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Detroit is Officially Bankrupt
#156823
12/03/2013 06:32 AM
12/03/2013 06:32 AM
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Joined: Jan 2002
Posts: 24,829
Tulsa
airforce
OP
Administrator
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OP
Administrator
Senior Member
Joined: Jan 2002
Posts: 24,829
Tulsa
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And pensions are not exempt from the chopping block. It's the largest city to ever enter into Chapter 9, but it certainly won't be the last. The Michigan Constitution protects public pensions as a "contractual obligation that cannot be diminished or impaired." But U.S. bankruptcy law allows contract cuts, and Judge Rhodes ruled that federal law preempts the state Constitution. This is going to get hairy. The city of Detroit today officially became the largest municipality in U.S. history to enter Chapter 9 bankruptcy after U.S. Bankruptcy Judge Steven Rhodes declared it met the specific legal criteria required to receive protection from its creditors.
The landmark ruling ends more than four months of uncertainty over the fate of the case and sets the stage for a fierce clash over how to slash an estimated $18 billion in debt and long-term liabilities that have hampered Detroit from attacking pervasive blight and violent crime.
“It is indeed a momentous day,” Rhodes said at the end of a 90-minute summary of his ruling. “We have here a judicial finding that this once proud city cannot pay its debts. At the same time, it has an opportunity for a fresh start. I hope that everybody associated with the city will recognize that opportunity.”
Rhodes — in a surprise decision this morning — also said he’ll allow pension cuts in Detroit's bankruptcy. Rhodes emphasized that he won’t necessarily agree to pension cuts in the city’s final reorganization plan unless the entire plan is fair and equitable.
“Resolving this issue now will likely expedite the resolution of this bankruptcy case,” he said.... Onward and upward, airforce
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Re: Detroit is Officially Bankrupt
#156824
12/03/2013 03:43 PM
12/03/2013 03:43 PM
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Joined: Jan 2008
Posts: 4,317
Central Virginia; VIM
SBL
Senior Member
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Senior Member
Joined: Jan 2008
Posts: 4,317
Central Virginia; VIM
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Watch the Robocop movies. With the exception of Robocop himself, Detroit is EXACTLY like it is in the movie.
On equipment: You get what you inspect, not what you expect.
On training: Our drills are bloodless battles so that our battles are bloody drills.
On tactics: Cheating just means you're serious about winning.
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Re: Detroit is Officially Bankrupt
#156825
12/03/2013 04:38 PM
12/03/2013 04:38 PM
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Joined: Oct 2001
Posts: 3,823
Trapped in Rhode Island
Lord Vader
Member
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Member
Joined: Oct 2001
Posts: 3,823
Trapped in Rhode Island
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If the pensions are cut as much as was reported on TV, it was stated that a $3,000 Pension may be cut to about $400 and that will be hard to live with and things may get very interesting if the retirees decide to protest and the protest gets violent. One big question since a lot of the protesters will be retired Cops what will the on duty Cops do?
The song “The Night Chicago Died” may become the “The Night Detroit Died”
I hope there will be a lot of violence on the streets of Detroit.
VINCE AUT MORIRE (Conquer or Die)
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Re: Detroit is Officially Bankrupt
#156828
12/05/2013 04:11 AM
12/05/2013 04:11 AM
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Joined: Jan 2002
Posts: 24,829
Tulsa
airforce
OP
Administrator
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OP
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Tulsa
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The Detroit pension system will appeal the ruling. That was a real shocker. After a closed-door meeting today in downtown Detroit, officials with the city’s main pension plan said they are poised to file an appeal of Tuesday’s decision that the city is eligible for bankruptcy.
The bankruptcy process will hurt the city’s retirees and future retirees and must be stopped, said Michael VanOverbeke, general counsel for Detroit’s General Retirement System, a pension plan with about 12,000 retirees and about 8,000 active employees.
As soon as U.S. Bankruptcy Judge Steven Rhodes issues his written ruling, expected today, the pension fund’s trustees intend to appeal it federal court, VanOverbeke said. And he said that a meeting is scheduled for Thursday of trustees of the city’s other big retirement fund – the Police and Fire Retirement System, which shares office space with the General Retirement System on the 9th floor of the Coleman A. Young Municipal Building.
The police and fire fund also is expected to appeal Rhodes’ ruling, which officially declared Detroit to be the largest municipality in U.S. history to enter Chapter 9 bankruptcy.... Onward and upward, airforce
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