Judge sets June trial on Detroit bankruptcy plan - FOX 32 News Chicago

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>>

  • 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.
  • Storm damage in Oakland and Macomb counties

    Storm damage in Oakland and Macomb counties

    Monday, July 28 2014 6:27 AM EDT2014-07-28 10:27:31 GMT
    Damage was reported across Metro Detroit Sunday after severe storms moved across our area. About 200,000 customers lost power in the hail, heavy rain, strong winds, localized flooding and thunder and lightning.
    Damage was reported across Metro Detroit Sunday after severe storms moved across our area. About 200,000 customers lost power in the hail, heavy rain, strong winds, localized flooding and thunder and lightning.
  • Download the FOX 2 Apps


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

  • Attorney wants investigation of city clerk over Arab-American voter suppression

    Attorney wants investigation of city clerk over Arab-American voter suppression

    Tuesday, July 29 2014 11:43 PM EDT2014-07-30 03:43:20 GMT
    It is the tale of two cities. one paints a picture of a meticulous Dearborn Heights city clerk, following the law and fighting for a fair election. The other a story of abuse of power, mishandled ballots and voter suppression.Fatima Abdrabboh is an attorney and Michigan's director of the Arab-American Anti-Discrimination Committee the largest chapter in the country. She is calling for a full-scale investigation into claims that Walter Prusiewicz mishandled ballots from Arab-American voters fo...
    It is the tale of two cities. one paints a picture of a meticulous Dearborn Heights city clerk, following the law and fighting for a fair election. The other a story of abuse of power, mishandled ballots and voter suppression.Fatima Abdrabboh is an attorney and Michigan's director of the Arab-American Anti-Discrimination Committee the largest chapter in the country. She is calling for a full-scale investigation into claims that Walter Prusiewicz mishandled ballots from Arab-American voters fo...
  • Warren grandparents upset after grandchildren see racist graffiti at park

    Warren grandparents upset after grandchildren see racist graffiti at park

    Tuesday, July 29 2014 11:15 PM EDT2014-07-30 03:15:40 GMT
    Tuesday afternoon Bruce and Lubertha Callaway took their grandchildren to Shaw Park in Warren when they saw something they couldn't believe.
    Tuesday afternoon Bruce and Lubertha Callaway took their grandchildren to Shaw Park in Warren when they saw something they couldn't believe.
  • 3-year-old shocked, downed power lines electrify fence

    3-year-old shocked, downed power lines electrify fence

    Tuesday, July 29 2014 10:51 PM EDT2014-07-30 02:51:19 GMT
    A 3-year-old boy is in the hospital after getting shocked by an electrical charge.
    A 3-year-old boy is in the hospital after getting shocked by an electrical charge.
Powered by WorldNow

205 N. Michigan Avenue
Ground Floor
Chicago, IL 60601
Station Operator: (312) 565-5532
Newsroom: (312)565-5533

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