What's Next In Detroit Bankruptcy - DC News FOX 5 DC WTTG

What's Next In Detroit Bankruptcy

Posted: Updated:

by ELIZABETH PRANN
Washington, DC.

Now that the city of Detroit has filed a historic bankruptcy involving more than $18 billion in debts that officials say have been piled up over 60 years, what's next?

The process will be a lengthy one. It will involve more than 100,000 creditors, including the police and fire retirement system, as well as the city's 20,000 general retirees and emergency managers.

Kevyn Orr says all city workers, including current and retired, could see pensions cuts.

"We are going to have a dialogue with pension funds about what we can do. And they are two different funds police and fire and general services and they may have different levels of funding," says Orr, a bankruptcy expert hired by the state.

Reports say pension holders plan to make the argument that the governor cannot impose a Chapter 9 filing that would effect pensions.

Orr has called on a federal bankruptcy judge to appoint a committee to represent the retiree interests.

Any federal resources, however, are already strained. The national debt remains well over $16 trillion and the federal government is struggling under automatic spending cuts.

The mayor says the city has to set a benchmark on how to come back from this tragedy and they're monitoring the federal response.

"Now that we've done our bankruptcy filing, I think we need to take a step back and see what's next. There's a lot of conversations, planning and negotiations that will go into fixing our city," says Mayor David Bing.

The president and members of his team continue to closely monitor the situation in Detroit, but they've given no indication that a bailout is on the agenda.

  • Local NewsMore>>

  • Gaggle Of Geese Making A Mess Of Emmaus Park

    Gaggle Of Geese Making A Mess Of Emmaus Park

    Tuesday, July 22 2014 6:57 PM EDT2014-07-22 22:57:03 GMT
    They may be Canada's least popular export: geese, or more exactly, goose droppings.
    They may be Canada's least popular export: geese, or more exactly, goose droppings.
  • Ya Gotta Try This Tasting

    Ya Gotta Try This Tasting

    Tuesday, July 22 2014 6:34 PM EDT2014-07-22 22:34:59 GMT
    Join FOX 29's Mike Jerrick and the Good Day Philadelphia team for a tasty night of yummy treats benefiting local youth.You've all seen Mike's weekly "Ya Gotta Try This" segments on Good Day Philadelphia, where he visits local restaurants and eating establishments to try their signature, and sometimes, unusual, dishes. Now you have the chance to do the same at the "Ya Gotta Try This" Tasting, Thursday, October 2nd, 6:30 to 9:30, at the Independence Visitor Center, One North Independence Mall W...
    Join FOX 29's Mike Jerrick and the Good Day Philadelphia team for a tasty night of yummy treats benefiting local youth.You've all seen Mike's weekly "Ya Gotta Try This" segments on Good Day Philadelphia, where he visits local restaurants and eating establishments to try their signature, and sometimes, unusual, dishes. Now you have the chance to do the same at the "Ya Gotta Try This" Tasting, Thursday, October 2nd, 6:30 to 9:30, at the Independence Visitor Center, One North Independence Mall W...
  • Suspect Arrested In Upper Merion Burglary, Home Invasion

    Suspect Arrested In Upper Merion Burglary, Home Invasion

    Tuesday, July 22 2014 6:24 PM EDT2014-07-22 22:24:39 GMT
    SkyFOX was over the scene in Upper Merion just after 8 a.m. on Tuesday morning where police say what started as a burglary turned into a home invasion.
    SkyFOX was over the scene in Upper Merion just after 8 a.m. on Tuesday morning where police say what started as a burglary turned into a home invasion.
Powered by WorldNow

WTTG FOX 5 & myfoxdc
5151 Wisconsin Ave. NW
Washington, DC 20016
Main Number: (202) 244-5151
Newsroom: (202) 895-3000
fox5tips@wttg.com

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices