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Creditors say Detroit bankruptcy plan lacks needed details
April 7, 2014 / 9:27 PM / in 4 years

Creditors say Detroit bankruptcy plan lacks needed details

April 7 (Reuters) - Creditor objections flowed into a U.S. bankruptcy court on Monday claiming a document supporting Detroit’s plan to deal with $18 billion of debt and other obligations is woefully short on facts.

Labor unions, bond insurers and two Michigan counties had filed documents with the court as of 5 p.m. ET, with more objections expected before a deadline next Monday.

Detroit’s biggest union, American Federation of State, County and Municipal Employees Council 25, whose members face cuts in retirement benefits, wrote that “the city has failed to provide large amounts of critical information.”

Michigan counties of Oakland and Macomb cited inadequate information on city’s plans to deal with its regional water and sewer department and outstanding debt. And bond insurers Financial Guaranty Insurance Co and Berkshire Hathaway Assurance Corp cited insufficient details on Detroit’s intended treatment of bonds they insure.

Judge Steven Rhodes, who is overseeing Detroit’s historic bankruptcy case, has set an April 14 deadline for the city to respond to the objections and an April 17 hearing on any unresolved objections to a revised disclosure statement the city filed with the court on March 31. (Reporting By Karen Pierog; Editing by Steve Orlofsky)

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