July 21 Detroit's city workers and retirees voted in favor of the city's debt adjustment plan, according to voting results filed late on Monday in U.S. Bankruptcy Court, in what should clear the way for the final stage of the city's historic bankruptcy case.
The city declared that the overwhelming vote by members of its two retirement systems to accept the plan to adjust $18 billion of debt puts Detroit on track for a coming trial to determine whether the plan is fair and feasible. That phase is scheduled to begin on Aug. 14.
Only four classes of Detroit creditors, including limited-tax general obligation bonds and pension debt, voted to reject the plan, while six accepted it, the court filing showed.
It was not immediately clear how holders of $5.27 billion of water and sewer revenue bonds voted. (Reporting By Karen Pierog and Lisa Lambert, Editing by David Gaffen and Jacqueline Wong)