Judge sets June trial on Detroit bankruptcy plan - Boston News, Weather, Sports | FOX 25 | MyFoxBoston

Judge sets June trial on Detroit bankruptcy plan

Posted: Updated:
DETROIT (WJBK) -

A judge has set a June 16 trial on Detroit's plan to emerge from bankruptcy.

U.S. Bankruptcy Judge Steven Rhodes also says he is giving creditors until March 28 to file objections to the plan released last week by Detroit emergency manager Kevyn Orr.

Rhodes is encouraging all sides to negotiate with "full intensity and vigor" to resolve any disputes before they land in court.

Under Detroit's plan, pension holders could expect to get 70 percent to 90 percent of what they are owed, while many banks would receive as little as 20 percent.

Detroit retirees and community leaders presented an alternative plan Monday which gives more percentages to pensioners, who feel they are being "scapegoated."

ALSO SEE: Detroit retirees, community leaders submit alternative bankruptcy plan

Orr's plan also puts more than one billion dollars towards capital improvements. Emergency manager spokesperson Bill Nowling says almost half of that amount would be put towards blight removal, which would happen in the first five years.

Part of that billion dollars would also upgrade Detroit's bookkeeping technology. Nowling says some of the systems used are 20 years old.

The city also plans to use millions in federal tax dollars to tear down thousands of publicly-owned residential buildings.

VIDEO: Click on the video player above to learn more about the plan in a report from FOX 2's Randy Wimbley

Many issues are still unsettled, especially Gov. Rick Snyder's proposal for the state to kick in $350 million toward pensions. Lawmakers haven't signed on yet.

The plan also still needs the stamp of approval from Judge Rhodes.

-The Associated Press contributed to this report

  • Randy WimbleyMore>>

  • VIDEO: Witness says man roughed up by Clinton Township police, hospital security

    VIDEO: Witness says man roughed up by Clinton Township police, hospital security

    Thursday, July 31 2014 11:25 PM EDT2014-08-01 03:25:38 GMT
    In a video spreading across social media, a Michigan man says police and hospital security roughed up a man.
    In a video spreading across social media, a Michigan man says police and hospital security roughed up a man.
  • Duggan bringing big changes to Detroit water department, starting with shutoffs

    Duggan bringing big changes to Detroit water department, starting with shutoffs

    Tuesday, July 29 2014 8:51 PM EDT2014-07-30 00:51:24 GMT
    Detroit Mayor Mike Duggan is promising big changes at the water department, starting with the controversial shutoffs."Certainly it has hurt the reputation of the city," Duggan said. "I have been anxious to do something about it for awhile and I am just glad I have a chance to do it,"Emergency Manager Kevyn Orr handed over the water department to the mayor and City Council TuesdayDuggan says better publicizing assitance programs is the biggest priority."I still don't think the people in need h...
    Detroit Mayor Mike Duggan is promising big changes at the water department, starting with the controversial shutoffs."Certainly it has hurt the reputation of the city," Duggan said. "I have been anxious to do something about it for awhile and I am just glad I have a chance to do it,"Emergency Manager Kevyn Orr handed over the water department to the mayor and City Council TuesdayDuggan says better publicizing assitance programs is the biggest priority."I still don't think the people in need h...
  • Royal Oak fire crew forced to watch house burn waiting for DTE

    Royal Oak fire crew forced to watch house burn waiting for DTE

    Tuesday, July 29 2014 5:47 PM EDT2014-07-29 21:47:18 GMT
    Roberta Erxleben has lived in her house for 30 years and says her garage would not have been destroyed Sunday had DTE responded to another electric fire sooner.
    Roberta Erxleben has lived in her house for 30 years and says her garage would not have been destroyed Sunday had DTE responded to another electric fire sooner.
  • Download the FOX 2 Apps


  • FOX 2 News Five-Day Forecast
  • Local NewsLocal NewsMore>>

  • Migrant teens from Central America to be housed in Farmington Hills

    Migrant teens from Central America to be housed in Farmington Hills

    Friday, August 1 2014 12:10 AM EDT2014-08-01 04:10:56 GMT
    Illegal immigrant teens from Central America to be housed in Farmington HillsTwenty-four illegal immigrant teens from Central America will soon be housed at Wellspring Lutheran Services in Farmington Hills, which has secured a federal contract. The immigration issue is a major one, and what seemed far, far away is now coming closer and closer to home."We've been watching this for six, eight weeks now, now it's Michigan," said William Largent, president and CEO of Meskwaki. the business arm of...
    Illegal immigrant teens from Central America to be housed in Farmington HillsTwenty-four illegal immigrant teens from Central America will soon be housed at Wellspring Lutheran Services in Farmington Hills, which has secured a federal contract. The immigration issue is a major one, and what seemed far, far away is now coming closer and closer to home."We've been watching this for six, eight weeks now, now it's Michigan," said William Largent, president and CEO of Meskwaki. the business arm of...
  • VIDEO: Witness says man roughed up by Clinton Township police, hospital security

    VIDEO: Witness says man roughed up by Clinton Township police, hospital security

    Thursday, July 31 2014 11:25 PM EDT2014-08-01 03:25:38 GMT
    In a video spreading across social media, a Michigan man says police and hospital security roughed up a man.
    In a video spreading across social media, a Michigan man says police and hospital security roughed up a man.
  • Large two truck crash closes I-75, second accident nearby

    Large two truck crash closes I-75, second accident nearby

    Thursday, July 31 2014 10:57 PM EDT2014-08-01 02:57:29 GMT
    A crash involving two semi trucks shut down I-75 tonight, according to Michigan State Police.
    A crash involving two semi trucks shut down I-75 tonight, according to Michigan State Police.
Powered by WorldNow

25 FOX Drive
Dedham, MA 02026

Phone (781) 467-2525

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