One year into bankruptcy, a grand coalition emerges to move Detroit forward
By Nathan Bomey and Matt Helms, Detroit Free Press | |
McClatchy-Tribune Information Services |
For the first time in ages, there's unity -- albeit perhaps not comity -- among
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With last-minute votes still being tabulated this weekend, pensioners appeared to have backed
The idea that
The vote clears the way for the city to ask U.S. Bankruptcy Judge
The beginning of the end
But it's not over yet. Rhodes will conduct a comprehensive trial starting
Although several major financial creditors are still fighting the plan, they are now pitted against a grand coalition of the city,
"If this goes forward, we proceed to the trial," said
"I'm prayerful and thankful that at least this part is over and we will be going into the challenge with other creditors," Lightsey said.
She said she believes most pensioners understood they had little chance of prevailing in any challenge of the pension cuts and faced far more significant losses to their pension checks if they had voted no.
"I know we have many beneficiaries who have small pensions, and a 27% cut would have impacted their lives," Lightsey said. "The thought of them having to live with a 27% cut to me was unconscionable."
"Then if you add in the feelings of betrayal and overwhelming anger, some people let their emotions run rampant," he added. "They were voting to make a statement."
Opponents frequently said they would vote no to preserve their right to a court fight over
Others suggested that the city should be forced to sell art from the DIA to satisfy debts, but Orr noted that any proceeds from the museum would be divvied up among all creditors, leaving a smaller pool of money for pensioners than the
"No one is happy with the situation," Eddings said Saturday. "You're in a situation where there's a bad choice and a worse choice. Any rational person would vote yes."
Two major objectors
Despite the significant momentum, two well-funded opponents linger as significant obstacles: bond insurers
Their opposition to
Orr's team of
For now,
Still, a sale of DIA treasures now appears to be unlikely because the city's retirees and unions are supporting the plan of adjustment instead of joining the bond insurers in a push for a DIA liquidation.
"The bankruptcy code does require that the treatment of us be fair and equitable. It means what it sounds like: that we be treated fair and equitably. But we're getting virtually zero," Sprayregen said in an interview. "We think it's quite unfortunate that this massively adversarial process is going on."
Real legal issues remain
If the bond insurers and the city don't reach a settlement within the next month -- or even during the bankruptcy trial --
The bond insurers plan to argue that
"This isn't going to be a show trial," said
For one thing,
But Rhodes has repeatedly pushed for an expedient resolution of
"No one anticipated we would have been this far along as we are now," said
Looking toward the future
With the fast-track bankruptcy speeding toward a resolution, attention will pivot quickly toward Orr's future at the city's helm.</p>
That could happen in the fall, potentially placing Mayor
By all accounts, Duggan has walked a political tightrope by forging a strong working relationship with both Orr and the
But when Orr is gone, the looming question is whether the grand coalition that may help end
That's a challenge bankruptcy can't address.
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