San Bernardino, the bankrupt Southern California city, has a tentative agreement with its biggest creditor, the California Public Employees Retirement System, that should help it in talks with others.
Since filing for bankruptcy in August 2012, the city has been mired in court fights against creditors including Calpers and the unions, while creditors vie with each other.
More than 90 objections were posted on the U.S. Bankruptcy Court website today, each one or two pages long and asking Judge Steven Rhodes to reject Detroits proposed plan of adjustment.
The California Public Employees Retirement System can challenge the legality of San Bernardino, Californias bankruptcy, the U.S. Court of Appeals in San Francisco ruled.
Detroits plan to end its $18 billion bankruptcy assumes bondholders offered 20 cents on the dollar will eventually swallow a deal that guarantees police and firefighters collect 90 percent of their pensions.
Detroit filed a proposal to reduce its $18 billion debt load and exit court supervision, starting what may be the most contentious phase of the biggest-ever U.S. municipal bankruptcy.
Detroits record $18 billion bankruptcy should end an erroneous presumption of municipal bond investors that they have more protection from losses than other creditors, a lawyer for the city told a judge.
The contracts, signed in 2005 and 2006, were a sham designed to circumvent a Michigan law capping how much debt cities could incur, the city said yesterday in a complaint filed in U.S. Bankruptcy Court in Detroit.
Creditors will have a chance to vote on the proposal once its filed in U.S. Bankruptcy Court in Detroit and the judge determines it gives enough information.