'Complicated' Detroit bankruptcy vote out July 21


Associated Press

The counting of votes cast by creditors in Detroit's bankruptcy case is a "little complicated," but the city is on track to report results next week, an attorney said Monday.

More than 30,000 retirees and current and former workers were eligible to vote on pension changes through last Friday. Their approval would trigger a bailout, valued at $816 million, from the state of Michigan, foundations and the Detroit Institute of Arts.

Detroit's state-appointed emergency manager, Kevyn Orr, filed for federal bankruptcy protection a year ago, saying Detroit's debt was about $18 billion. About $3.5 billion was listed as unfunded pension liabilities.

The city had planned to file the results next Monday, but Judge Steven Rhodes asked whether the numbers could become public this week. No, attorney Heather Lennox replied.

"The financial tabulation is a little complicated," she said without elaborating.

The ballots are counted two ways: by a simple up-or-down vote and also by the size of a creditor's claim. In the case of a retiree, it would be the pension owed. The job is being handled by a California contractor.

Approval or defeat will become part of the evidence at trial next month on Detroit's overall strategy to get out of bankruptcy. Approval would make it easier for Rhodes to declare the city's exit plan fair and feasible.

Financial aid from the state and other parties would prevent the sale of city-owned art and avert larger pension cuts. The art museum said it will hold a news conference Wednesday. It has pledged to come up with $100 million for the so-called grand bargain.

General retirees would see a 4.5 percent cut and also lose annual inflation adjustments. Police officers and firefighters would lose a portion of their annual cost-of-living payment.

Follow Ed White at http://twitter.com/edwhiteap

Read more Breaking News - Business stories from the Miami Herald

Miami Herald

Join the

The Miami Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

The Miami Herald uses Facebook's commenting system. You need to log in with a Facebook account in order to comment. If you have questions about commenting with your Facebook account, click here.

Have a news tip? You can send it anonymously. Click here to send us your tip - or - consider joining the Public Insight Network and become a source for The Miami Herald and el Nuevo Herald.

Hide Comments

This affects comments on all stories.

Cancel OK

  • Marketplace

Today's Circulars

  • Quick Job Search

Enter Keyword(s) Enter City Select a State Select a Category