Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

Detroit raced to file bankruptcy ahead of move to block it
Reuters.com ^ | Fri Jul 19, 2013 12:23am EDT | Deepa Seetharaman and Karen Pierog

Posted on 07/19/2013 12:14:13 PM PDT by Wally_Kalbacken

(Reuters) - Detroit's historic municipal bankruptcy filing on Thursday came less than 10 minutes before lawyers for the city's pension funds and retirees had rushed to another court to try to block it.

The bare bones bankruptcy petition, which came at 4:06:22 p.m., blindsided everyone in the room, according to two lawyers who were in state court in Lansing, Michigan, at the time. Even the lawyer representing the governor and the judge were caught unaware.

"I think everybody was surprised," said Bill Wertheimer, an attorney for a group of current and retired Detroit city workers who filed a lawsuit early this month to try to block any bankruptcy.

"The attorney general, he claimed to know nothing about it, like he was deaf, dumb and blind," said Wertheimer, who is paid by the United Auto Workers. "The judge was clearly taken aback."

The largest-ever municipal bankruptcy in U.S. history puts at risk the future of retiree pension and health benefits for thousands of city workers.

Although city retirement benefits are enshrined in Michigan's constitution, Kevyn Orr, the city's state-appointed emergency manager, outlined a plan for creditors that would include significant cuts in pension payments.

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; Humor; Miscellaneous
KEYWORDS: bankruptcy; chapter9; detroit
If you look at the documents that were signed by the emergency manager, they had to hand correct the date of the submission. So, they really were hustling this into existence.

One of the great things about bankruptcy is that it cuts like a guillotine, down to the minute and second the case is time stamped on filing.

I will be following this closely, watching to see how the Obama Administration injects itself, and looking for "non-bailout" bailouts accomplished by federal taxpayer subsidization (as in the case of GM and Chrysler.) These folks deserve a hard fall, and there is no reason why taxpayers in OK, AZ or GA or anywhere else should take up the slack.

1 posted on 07/19/2013 12:14:13 PM PDT by Wally_Kalbacken
[ Post Reply | Private Reply | View Replies]

To: Wally_Kalbacken

Sound like some county judge just froze the bankruptcy...or changes to retirement pay.


2 posted on 07/19/2013 12:16:39 PM PDT by Oldexpat
[ Post Reply | Private Reply | To 1 | View Replies]

To: Oldexpat

No, that’s not what happened...once filed in Bankruptcy court...all state court actions are stayed. County Judge has no authority...


3 posted on 07/19/2013 12:18:23 PM PDT by Tulane
[ Post Reply | Private Reply | To 2 | View Replies]

To: Wally_Kalbacken

Now that this is a reality, who gets paid? Obviously, creditors and bondholders do not. But does the city’s obligation to the retirement funds continue, and will those payments still be made, or is this “account” wiped out along with everything else?


4 posted on 07/19/2013 12:21:58 PM PDT by redhead (NO GROUND TO THE DEVIL! Remember BENGHAZI!! Use Weaponized Prayer)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Wally_Kalbacken

“I think everybody was surprised,” said Bill Wertheimer, an attorney for a group of current and retired Detroit city workers who filed a lawsuit early this month to try to block any bankruptcy.

WOW. I imagine this guy is a college graduate being a lawyer, yet he was surprised by the move of a BANKRUPT City to actually file for bankruptcy. How is that education working out for you fellow?


5 posted on 07/19/2013 12:28:56 PM PDT by SECURE AMERICA (Where can I go to sign up for the American Revolution 2013 and the Crusades 2013?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: redhead

What difference would it make if there is no money? Does whatever funds Detroit may have go to the pension fund above whatever essential like fire and police? But then, why do they need them?


6 posted on 07/19/2013 12:34:21 PM PDT by SkyDancer (Live your life in such a way that the Westboro church will want to picket your funeral.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Tulane
No, that’s not what happened...once filed in Bankruptcy court...all state court actions are stayed. County Judge has no authority...

(1) You're right, but

(2) even had the state court judge issued an injunction before the filing, there is a lot of caselaw saying that a state court cannot enjoin someone from filing bankruptcy, because the right to do so arises under federal law, and the Supremacy Clause therefore bars such injunctions.

7 posted on 07/19/2013 12:37:18 PM PDT by Lurking Libertarian (Non sub homine, sed sub Deo et lege)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Lurking Libertarian

Correct.

So much fun to watch the democrats freak out about this...and the best part—seeing as Detroit has had nothing but Democratic rule for the last 50 years, the pretzel logic it takes Democrats to blame republicans (or evil white people for leaving the paradise of Detroit and taking their tax dollars with them)is hilarious.

The little things in life...


8 posted on 07/19/2013 12:40:29 PM PDT by Tulane
[ Post Reply | Private Reply | To 7 | View Replies]

To: Tulane
Here she is in her full regalia, she looks like a prize to be married too...

http://www.detroitnews.com/article/20130719/METRO01/307190099/Ingham-County-judge-rules-Detroit-bankruptcy-withdrawn?odyssey=tab|topnews|text|FRONTPAGE

http://www.businessinsider.com/detroit-bankruptcy-said-unconstitutional-2013-7

9 posted on 07/19/2013 12:43:08 PM PDT by taildragger (The E-GOP won't know what hit them, The Party of Reagan is almost here, hang tight folks.....)
[ Post Reply | Private Reply | To 3 | View Replies]

To: SECURE AMERICA
“I think everybody was surprised,” said Bill Wertheimer, an attorney for a group of current and retired Detroit city workers who filed a lawsuit early this month to try to block any bankruptcy. WOW. I imagine this guy is a college graduate being a lawyer, yet he was surprised by the move of a BANKRUPT City to actually file for bankruptcy. How is that education working out for you fellow?

Don't send your kids to law skool dis is da pretzel lahgig day learn as day skrambel dare brhains...

10 posted on 07/19/2013 12:45:36 PM PDT by taildragger (The E-GOP won't know what hit them, The Party of Reagan is almost here, hang tight folks.....)
[ Post Reply | Private Reply | To 5 | View Replies]

To: taildragger
She is a big time Dem. After she signed the order, she directed that a copy of it be sent to Obama, saying that "maybe wants to help us out."

Question: Even if the pension funds had managed to file first, would her order have been valid?

11 posted on 07/19/2013 12:51:00 PM PDT by ken5050 (Due to all the WH scandals, MSNBC is changing its slogan from "Lean Forward" to "BOHICA")
[ Post Reply | Private Reply | To 9 | View Replies]

To: ken5050

See some of the post here that seem to say no, then again the presidents set in the bankruptcy of GM are horrid, anything now goes....


12 posted on 07/19/2013 12:54:27 PM PDT by taildragger (The E-GOP won't know what hit them, The Party of Reagan is almost here, hang tight folks.....)
[ Post Reply | Private Reply | To 11 | View Replies]

To: ken5050

From a couple of the stories I read, the state judge could be in legal difficulties due to her judgement today. One story claimed that she could be arrested and jailed for what she did today. Apparently, no one can stop the “Federal Bankruptcy Case” except a Federal judge.


13 posted on 07/19/2013 1:08:51 PM PDT by HOYA97 (twitter @hoya97)
[ Post Reply | Private Reply | To 11 | View Replies]

To: HOYA97

We lost one Dem Judge trying to hide assets with a short sale and Snyder had to appoint another Conservative. Could this sin be repeated here?


14 posted on 07/19/2013 1:13:18 PM PDT by taildragger (The E-GOP won't know what hit them, The Party of Reagan is almost here, hang tight folks.....)
[ Post Reply | Private Reply | To 13 | View Replies]

To: Wally_Kalbacken

Just curious. What happens if Detroit can’t declare bankruptcy and can’t pay its bills?

Just keep writing those checks


15 posted on 07/19/2013 1:46:17 PM PDT by CriticalJ (Suppose you were an idiot. And suppose you were a member of Congress.. But then I repeat myself. MT)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Oldexpat

state court cannot interfere in federal courts..

she ( the union bought and paid for judge )can rule that the streets be paved in gold..

she has no jurisdiction anymore..

now for the REAL reason the pension board filed this motion..

they have refused to open their books to the emergency manager, the state, or anyone else..

now they will be forced to..

watch how many people end up in prison..

or made to disappear by the mob


16 posted on 07/19/2013 2:04:04 PM PDT by joe fonebone (The clueless... they walk among us, and they vote...)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Wally_Kalbacken

I’m picturing some sort of Racing Lawyers video game...


17 posted on 07/19/2013 2:12:11 PM PDT by Buckeye McFrog
[ Post Reply | Private Reply | To 1 | View Replies]

To: joe fonebone
now for the REAL reason the pension board filed this motion.. they have refused to open their books to the emergency manager, the state, or anyone else.. now they will be forced to.. watch how many people end up in prison.. or made to disappear by the mob

Ok, on the refusal part, is that speculation or for do you know so for a fact?

Because someone over on ZeroHedge has noted the potential for Corruption, Theft, and all other forms of malfeasance, and this migh tbe the real game here.

* Someone is already going to Prison in regards to one investigation into the Pensions.
* Their was a big story over 2 years ago how a Crony of Kawames got appointed to the pension board and his investment expertise help dwindel the fund from 8.5 billion down to 6.5 billion.

18 posted on 07/19/2013 2:14:02 PM PDT by taildragger (The E-GOP won't know what hit them, The Party of Reagan is almost here, hang tight folks.....)
[ Post Reply | Private Reply | To 16 | View Replies]

To: taildragger

when i read stories in the newspapers, i scan between the lines, and one of the local papers IMPLIED that orr has not been able to see the books yet...

gotta read between the lines baby


19 posted on 07/19/2013 2:22:12 PM PDT by joe fonebone (The clueless... they walk among us, and they vote...)
[ Post Reply | Private Reply | To 18 | View Replies]

To: joe fonebone

I think you are right on.


20 posted on 07/19/2013 2:22:19 PM PDT by RetiredTexasVet (The short list would be the list of all administration officials that are NOT pathological liars!)
[ Post Reply | Private Reply | To 16 | View Replies]

To: taildragger
Here she is in her full regalia, she looks like a prize to be married to

FTA: Judge Rosemary Aquilina

Ah, another wise (*snicker*) latina...that still is dumber than a box of rocks.

21 posted on 07/19/2013 2:42:27 PM PDT by Moltke (Sapere aude!)
[ Post Reply | Private Reply | To 9 | View Replies]

To: Wally_Kalbacken

This is like a ship sinking and the passengers trying to wrest the buckets out of the hands of those trying to bail water. Ridiculous.


22 posted on 07/19/2013 2:45:08 PM PDT by JoeTheGeorgian
[ Post Reply | Private Reply | To 1 | View Replies]

To: joe fonebone
When i read stories in the newspapers, i scan between the lines, and one of the local papers IMPLIED that orr has not been able to see the books yet...gotta read between the lines baby.

I didn't know that thanks. I am sure you are aware their is a 60 day soup to nuts forensic review of the pension plans, and if they haven't seen the books, then one may ask why do they not want the books looked at?

Something is Rotten in Demark...

23 posted on 07/19/2013 2:54:19 PM PDT by taildragger (The E-GOP won't know what hit them, The Party of Reagan is almost here, hang tight folks.....)
[ Post Reply | Private Reply | To 19 | View Replies]

To: Buckeye McFrog
I’m picturing some sort of Racing Lawyers video game...

Based on Frogger, perhaps?

24 posted on 07/19/2013 3:03:59 PM PDT by gogeo (I didn't leave the Republcan Party, it left me.)
[ Post Reply | Private Reply | To 17 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson