Creditors ask Detroit bankruptcy delay, with fight over DIA art looming
|By Nathan Bomey, Detroit Free Press|
|McClatchy-Tribune Information Services|
An assortment of creditors -- ranging from unions to a major bond insurer to a group representing water bondholders -- asked Judge
The city said it's committed to the "expeditious time line" Rhodes proposed earlier this week because "it believes that time is of the essence in this Chapter 9 case and that the plan confirmation process should move forward as efficiently as possible." Still, the city asked Rhodes to delay the start of the hearing from
But in a motion filed in
Among them is the value of the DIA's property, which
The fate of the DIA has become a central issue in the bankruptcy. A group of nonprofit foundations have pledged
"Given the City's odd decision to value just 5% of the entire collection and its repeated failure to provide ownership information, there will be litigation surrounding the art and it will be time-consuming,"
A coalition of other creditors, including a trustee representing water bondholders that control
The UAW called on Rhodes to slow down the bankruptcy because of the potential cuts to pensioners.
Orr says the cuts are necessary to help the city emerge from bankruptcy and to help fund a 10-year,
But creditors have decried the proposed restructuring plan as unnecessarily harsh on the city's 24,000 retirees.
The insurer floated the possibility that the city should consider a water deal with a private investor instead of surrounding counties that would get seats on the board of directors under Orr's current proposal.
"While such a transaction has the potential to result in a better deal for the City and its creditors, at the very least, providing the City with time to explore this deal would improve the City's negotiating leverage with the suburbs,"
The committee's agreement to participate in mediation talks -- which it had previously refused to do -- was "too little, too late," Rhodes ruled.
The judge said the committee would add unnecessary expense and not add enough value to make it worthwhile.
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