Detroit bankruptcy

Stateside
3:43 pm
Wed April 16, 2014

With deals made with creditors, what's next in Detroit's bankruptcy?

Detroit's skyline.
Credit Lester Graham / Michigan Radio

It's turning into a momentous week in Detroit's quest to exit bankruptcy.

First came a deal with two global banks: UBS and Bank of America.

Then, an agreement with leaders of Detroit's retired police and firefighters.

That was followed late yesterday by a settlement with the remaining Detroit retirees.

Daniel Howes, a business columnist with The Detroit News, talks with us about the next challenges in the Detroit bankruptcy saga.

Opinion
11:29 am
Wed April 16, 2014

You don’t want to play poker with Kevyn Orr

Here’s the one thing certain about Detroit’s bankruptcy: You don’t want to play poker with Kevyn Orr.

The state-appointed emergency manager had everyone convinced city workers and retirees were facing a steep 26% cut in their pensions – a cut that would jump to 34% if they didn’t quickly approve the smaller amount.

The city was getting ready to mail them all ballots explaining the cuts and asking for their approval.

Then, voilà – yesterday, everything changed. Suddenly, negotiators came up with a deal whereby most pensions would be cut by less than 5%. Police and fire retirees pensions won’t be cut at all.

There seems little doubt that the 32,000 employees and retirees will approve this deal. Yet we need to remember two things. First of all, this is not final yet – not by a long shot.

Something else that’s still very uncertain has to happen first. The Michigan Legislature has to approve contributing $350 million to a fund designed to shore up the pensions and protect any of the work in the city-owned collections in the Detroit Institute of Arts from being possibly sold for the benefit of the creditors.

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Economy
4:54 pm
Tue April 15, 2014

Detroit bankruptcy: No pension cuts for police and fire retirees

Pension decisions made today in Detroit.
Credit Peter Martorano / Flickr

A major piece of the Detroit bankruptcy puzzle fell into place today.

The city reached a deal with the group representing Detroit's police and fire retirees. The deal means no cuts to monthly pension checks for retired officers and firefighters. 

We were joined by Michigan Radio's Sarah Cwiek in Detroit. 

Listen to the full interview above. 

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Politics & Government
1:07 pm
Tue April 15, 2014

Detroit bankruptcy mediators announce a deal with police and fire pensions

The Theodore Levin United States Courthouse in Detroit.
Credit Andrew Jameson / Wikimedia Commons

Mediators for the federal court overseeing Detroit's Chapter 9 bankruptcy say a deal has been reached between the city of Detroit and the Retired Detroit Police and Fire Fighters Association over pension and health benefits.

The deal calls for no cuts to current pension benefits, but does cut future "cost of living" increases in their benefits.

The Association's members still need to approve the plan through a vote.

The potential deal is the first agreement the city has reached with a group of retired workers.

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Politics & Government
11:20 pm
Mon April 14, 2014

Bankruptcy case delays Detroit's usual budget process

Detroit’s bankruptcy case is throwing a wrench in the city’s usual budget process.

Detroit Mayor Mike Duggan didn’t give his charter-mandated city budget address as scheduled Monday.

Rather, officials told City Council members that Detroit needs to update its plan of adjustment first. That’s the city’s restructuring blueprint for getting through bankruptcy.

Detroit chief financial officer John Hill said that since the plan will shape the city budget, it doesn’t make sense start talking now.

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Politics & Government
8:57 am
Sat April 12, 2014

The week in review

Credit Photo by penywise / morgueFile

This Week in Review, Rina Miller and Jack Lessenberry discuss the latest with the Detroit bankruptcy, the continuing controversies over the General Motors recall, and the money problems involving the charter school system running Muskegon Heights schools.


Law
9:11 pm
Fri April 11, 2014

Detroit bankruptcy judge ok's swaps settlement; says "now is the time to negotiate"

Judge Steven Rhodes approved a key settlement in Detroit’s historic bankruptcy case Friday.

The deal will settle a costly interest-rate swaps agreement with two banks, UBS and Bank of America, for $85 million.

Emergency manager Kevyn Orr has pushed hard for such a deal. Detroit had guaranteed the swaps with casino revenue, and paid out about $200 million since 2009.

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Weekly Political Roundup
5:31 pm
Thu April 10, 2014

Detroit bankruptcy case, bondholders and the future of the DIA

It’s Thursday, the day we talk Michigan politics with Ken Sikkema, former Senate Majority Leader and senior policy fellow at Public Sector Consultants, and Susan Demas, publisher of Inside Michigan Politics.

This week, host Jennifer White discusses the latest developments in the Detroit bankruptcy case and examines the implications.

There was a significant breakthrough yesterday. A settlement was announced between the city of Detroit and three major bond insurers. The insurers will get about 74 cents on the dollar, a significant increase from what emergency manager Kevyn Orr originally offered, and the roughly $50 million in savings will go to support retirees.

The question now is whether retirees will accept further cuts to their pensions, given the fact that Gov. Rick Snyder has stated that the state will not put any money forward unless the retirees agree to cuts. Ken Sikkema says it's imperative that retirees back the plan.

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Stateside
5:13 pm
Thu April 10, 2014

The latest developments between the DIA, Detroit pensioners, and creditors

Credit JSFauxtaugraphy/Flickr

There have been two big developments this week in the high-stakes showdown over Detroit's pensioners, its art treasures and creditors who hope bankruptcy judge Steven Rhodes will pressure the city to put those art treasures on the table.

There's a lot to try to sort out. So, as we do each Thursday, we spoke to Detroit News business columnist Daniel Howes.

Listen to the full interview above.

Politics & Culture
5:10 pm
Thu April 10, 2014

Stateside for Thursday, April 10, 2014

The average gas mileage of new vehicles sold in the U.S. has steadily been improving, and greenhouse gas emissions are at an all-time low. The Environmental Protection Agency also recently set new emissions standards, scheduled to be phased in between 2017 and 2025, that will reduce the amount of sulfur found in gasoline.

But is the slow and steady climb in fuel economy and emissions enough? On today’s show, we ask if the Obama administration's 2016 and 2025 fuel efficiency goals setting the bar too low?

Then, a new documentary film brings us the story of the Great Lakes as seen through its ice.

And, last month, Gov. Snyder confirmed a financial emergency existed in Royal Oak Township. Can other communities learn from Royal Oak’s situation?

Also, the Share Art Project is a collaborative effort among artists at the Buckham Gallery, students and the Genesee Valley Regional Center. We spoke to a Buckham board member about the program and an upcoming exhibit.

First on the show, there have been two big developments this week in the high-stakes showdown over Detroit's pensioners, its art treasures and creditors, who hope bankruptcy judge Steven Rhodes will pressure the city to put those art treasures on the table.

There's a lot to try to sort out. So, as we do each Thursday, we spoke to Detroit News business columnist Daniel Howes.

Opinion
10:14 am
Thu April 10, 2014

Detroit bondholders will be paid 74 cents on the dollar; working women can relate

If you heard my commentary yesterday on the latest in the Detroit bankruptcy battles, I began with the news that the city had reached a deal with the holders of its general obligation bonds.

All we knew then was that an agreement had been reached, and I said the bondholders were, to quote myself, “evidently going to settle for less than 20 cents on every dollar owed them.”

Well, I was astonishingly far off.

In fact, they ended up settling for 74 cents for every dollar. But there is a reason why I was so wrong.

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Politics & Government
6:00 am
Thu April 10, 2014

Bond insurer ups the ante in battle over the Detroit Institute of Arts

Credit DIA

One group who stands to lose a lot in Detroit’s bankruptcy has upped the ante in the battle over the Detroit Institute of Arts.

The Financial Guaranty Insurance Corporation, a major bond insurer, has gone out and solicited bids for the museum’s assets.

And in papers filed in federal bankruptcy court Wednesday, FGIC said it’s received four tentative bids for the museum’s assets, or portions of them.

The bidders include:

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Opinion
2:10 pm
Wed April 9, 2014

If you think the Detroit Institute of Arts is now safe, think again

If you aren’t following every twist and turn in the saga of Detroit’s bankruptcy, you may think things are well on track.

Today, in fact, came the good news that the city has apparently reached a deal with its unsecured bondholders, who are evidently going to settle for almost 75 cents of every dollar owed them. 

But the biggest and toughest challenges are ahead.

And if you think the Detroit Institute of Arts is now safe, think again.

Here is how things stand:

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Law
11:43 am
Wed April 9, 2014

Breakthrough settlement announced in Detroit bankruptcy case

Kevyn Orr
Credit Sarah Cwiek / Michigan Radio

Mediators in Detroit’s bankruptcy case have made a potentially huge breakthrough with some of the city’s bondholders.

Bondholders are one of the city’s biggest groups of unsecured creditors.

That means they’re also one of the most important groups for emergency manager Kevyn Orr to get on board with his plan of adjustment, and avoid a protracted legal battle that could bog the city down in bankruptcy court for months or years.

Now, negotiators for the city and three major bond insurers have announced a settlement deal.

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Politics & Government
10:28 am
Wed April 9, 2014

The week in Michigan politics

Credit NOAA

This Week in Michigan Politics, Emily Fox and Jack Lessenberry discuss the state of education in Michigan, an update on the Detroit bankruptcy and the race to fill four seats from Michigan's congressional delegation.

Politics & Culture
4:10 pm
Tue April 8, 2014

Stateside for Tuesday, April 8, 2014

A former Republican state representative says he was on the "wrong side of history" when he opposed same-sex marriage during his time in Lansing 10 years ago. On today's show, Chris Ward, former representative from Genoa County talked about the gay marriage ban and the future of the Republican Party.

Then, we spoke with a very talented Flint rapper about his music and raising the profile of the Flint community.

We heard from writer Deidre Stevens about the Ca-Choo Club, a very unique way to attract allergy sufferers to Sault Ste. Marie.

Also, as Michigan's Aug. 5 primary and November election draw closer, there are some very tight races shaping up. Who are the voters who could most influence the outcome of these races, depending upon whether they stay home or go to the polls?

First on the show, yesterday was the deadline to file objections to the disclosure statement spelling out Detroit's plan to climb out of its bankruptcy hole.

And yes, objections poured in – long lists of objections to the disclosure statement.

Detroit News reporter Chad Livengood joined us today to tell us who's objecting, why, and what comes next.

Stateside
3:50 pm
Tue April 8, 2014

Who objected to Detroit's disclosure statement?

Yesterday was the deadline to file objections to the disclosure statement spelling out Detroit's plan to climb out of its bankruptcy hole.

And yes, objections poured in – long lists of objections to the disclosure statement.

Detroit News reporter Chad Livengood joined us today to tell us who's objecting, why, and what comes next.

Listen to the full interview above.

Law
5:30 am
Mon April 7, 2014

Key ruling expected this week in Detroit bankruptcy

Judge Steven Rhodes will make a major ruling in Detroit’s ongoing bankruptcy case this week.

Rhodes will decide whether the city can settle an interest-rate swaps deal with two major banks for $85 million.

Detroit had hoped to hedge against interest rates rising when it entered into the swaps deal on some city pension debt in 2006.

But interest rates fell to nearly 0, and Detroit has been forced to shell out about $200 million to UBS and Bank of America since 2009.

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Politics & Government
8:24 am
Wed April 2, 2014

The week in Michigan politics

Credit NOAA

This Week in Michigan Politics, Jack Lessenberry and Christina Shockley discuss the impact of a fourth member of the state's congressional delegation who won't seek re-election, Medicaid expansion, President Obama's trip to Michigan to talk about the minimum wage, and Detroit's latest plan for bankruptcy.

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Politics & Government
10:04 pm
Tue April 1, 2014

Orr turns up the heat on Detroit pensioners; they push back

Retirees protest outside federal court in Detroit.
Credit Sarah Cwiek / Michigan Radio

Detroit pensioners are trying to turn up the heat on emergency manager Kevyn Orr Tuesday – just as he’s doing the same thing to them.

Protesters filled the street in front of Detroit’s federal courthouse on Tuesday to slam Orr’s proposed cuts to city pensions.

Orr filed a revised version of his bankruptcy restructuring plan there Monday. An earlier version, known formally as a plan of adjustment, was filed in February.

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