Posted: Aug 31, 2014 11:07 AM by COREY WILLIAMS
Updated: Aug 31, 2014 11:07 AM
Source: Associated Press
DETROIT - The trial to determine whether bankrupt Detroit's restructuring plan will be approved is set to begin just over a year after the city sought court protection in July 2013.
The confirmation trial for the largest municipal bankruptcy in U.S. history starts Tuesday in federal court.
Bill Nowling, spokesman for Detroit's emergency manager, says the city hopes to cut $12 billion in unsecured debt to a "much more manageable" $5 billion.
Massive debt, thousands of creditors and complex union and pension issues had many experts thinking Detroit's bankruptcy would take years to resolve. Two California cities - Stockton and San Bernardino - that filed a year before Detroit have cases that continue to drag on.
Pensioners already have approved the settlement plan, but at least one creditor says it is discriminatory.