The bankruptcy court for the Eastern District of Michigan, Detroit Division, will hold a status hearing today to discuss to address any outstanding issues with the city of Detroit’s bankruptcy filing.
On this past Friday, the court issued a ruling, at a hearing with bankruptcy lawyers for interested parties, stating that it would allow Detroit to move forward with its bankruptcy. The court noted it was not pleased that issues were still outstanding and requested bankruptcy attorneys for all sides give a time line for resolving the remaining issues.
At today’s hearing, the court expects bankruptcy lawyers for Detroit and for its creditors to address those outstanding issues and any remaining time frame for resolution. The bankruptcy lawyers also need to address any other tasks that need to be completed for the plan.
Consumer Debtors face a much less time consuming filing in Chapter 13 bankruptcy. After creditors are notified of the case, they and the bankruptcy Trustee are allotted time to object to the proposed repayment plan. Typically, the court will confirm the plan as long as all objections have been resolved prior to the confirmation hearing.
An experienced bankruptcy attorney can better explain the process, how an individual’s financial affairs might affect creditor/court judgment, and time frame for confirmation of the case.
Detroit is poised to exit bankruptcy within weeks, and today’s hearing attempts to pin down the date residents get their city back.
Judge Steven Rhodes has scheduled a hearing for noon as he prepares to sign the document that officially authorizes Detroit’s exit from Chapter 9 bankruptcy. On Friday, he gave a lengthy summary of the reasons behind his approval of the city’s restructuring plan. Confirmation of the plan came after a two-month hearing.
Rhodes will also hold a status meeting today to tie up loose ends and make sure the countdown to the city returning to its own governance marches forward.
Lawyers had the weekend to determine what still needs to be done to formalize Detroit’s exit from bankruptcy protection and help pin down a date when it might happen.
Today, Rhodes wants lawyers to provide a list of tasks that need to be done, with information on how long they might take, whether there are any legal hurdles requiring rulings — all in an effort to determine the date his final order will take effect. Detroit filed for bankruptcy on July 18, 2013, citing debts and long-term liabilities of $18 billion.
The judge also demanded that lawyers involved in tying up settlements with the city resolve them by noon today. On Friday, he said he was distressed to learn there were outstanding issues.
He also wants to know whether any parties are planning to file appeals.
Rhodes said he also has at least three wording changes to the confirmation order and some legal housekeeping to attend to.
Detroit Free Press: http://www.freep.com/story/news/local/detroit-bankruptcy/2014/11/10/detroit-bankruptcy-hearing/18775885/
