So, the Detroit bankruptcy means what? Q: I’m a Detroit creditor. How long before I get paid? A: It could take months or longer depending on when the Chapter 9 plan is approved. The current plan in court calls for paying back secured debtholders in full, paying unsecured creditors—including the pensions of city workers—less than 10 cents on the dollar and reinvesting $1.25 billion to improve the city’s flagging public safety and for blight removal. Some creditors are not in support of this plan for a variety of reasons, people familiar with the matter have said. Q: I’m a Detroit pensioner. When will I know what might happen to me and my pension income? A: Part of this depends on how things play out in court, as noted above. It is possible pensions for current workers could be reduced. More will come to light after a reorganization plan is approved, and that will likely take at least several months. In the meantime, lawyers are advocating for pension holders to try and recoup more than what the current plan calls for. blogs.wsj/moneybeat/2013/07/26/detroits-bankruptcy-what-you-need-to-know/
Posted on: Fri, 26 Jul 2013 16:12:03 +0000
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