Proposed Detroit bankruptcy plan

[Gulo Blue]

http://www.nbcnews.com/business/economy/detroit-files-historic-bankruptcy-blueprint-n35511

Over the next 40 years they project paying
$4.3B to pensions
$1.1B to bondholders

Firemen and Police get 90% of their pensions with no cost of living allowances.
General retirees get 70%.

If you click the summary the news article is based on, it actually says "would likely receive in excess of" regarding the 70% and 90%. So it's an estimate.

 

[Michchamp]

are bondholders getting a haircut at all?

 

[Gulo Blue]

are bondholders getting a haircut at all?

I think they're getting a big one. I'm not sure how these numbers relate to total debt of $18 billion.

 

[Gulo Blue]

This link says they're proposing bondholders get 20 cents on the dollar.
http://www.latimes.com/nation/natio...n-cuts-20131203,0,5624338.story#axzz2tyF6J2Rl

My personal feelings are that pensions come first and should be funded 100% before a single bondholder gets a dime, but honestly, this is much better than what I had expected them to do. Of course, this is just a proposal...we'll see if it actually happens.

 

[Michchamp]

This link says they're proposing bondholders get 20 cents on the dollar.
http://www.latimes.com/nation/natio...n-cuts-20131203,0,5624338.story#axzz2tyF6J2Rl

My personal feelings are that pensions come first and should be funded 100% before a single bondholder gets a dime, but honestly, this is much better than what I had expected them to do. Of course, this is just a proposal...we'll see if it actually happens.

that is. I have to say... not what I expected at all.

 

[hailhail]

These numbers shouldn't be a major surprise to anyone following the proceedings closely. Rhodes has made clear that any cuts to pensions will have to be carefully assessed and justified. Orr, in a shitty situation, has been pretty stand-up in his handling of everything (though I'm curious about what really happened with his relationship with the former mayor, Dave Bing -- it eroded fairly quickly and I'm not precisely sure why).