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Detroit bankruptcy challenged on constitutional grounds
Reuters ^ | August 20, 2013 | By Joseph Lichterman and Bernie Woodall

Posted on 08/20/2013 3:53:49 AM PDT by Oldeconomybuyer

Public labor unions took aim at Detroit's historic bankruptcy filing on Monday, asking a U.S. court to toss the city's bid for protection from its creditors because it is constitutionally flawed on both the state and federal levels.

A union that represents public-sector workers even took the unusual step of arguing that Chapter 9 of the federal bankruptcy code, under which municipalities seek protection from their creditors, violates the U.S. Constitution.

But as a midnight deadline for filing objections to the bankruptcy passed, Detroit's bondholders were conspicuously absent from the long list of unions, pension funds and individual creditors lining up to argue against bankruptcy.

Unions representing the city's firefighters and police alleged that state-appointed emergency manager Kevyn Orr had failed to negotiate in good faith, stating "there were no negotiations."

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


TOPICS: Business/Economy; News/Current Events; Politics/Elections; US: Michigan
KEYWORDS: chapter9; detroit; michigan; rosemaryaquillina

1 posted on 08/20/2013 3:53:49 AM PDT by Oldeconomybuyer
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To: Oldeconomybuyer

Too bad the labor unions didn’t show the same concerns when Obama stole the equity from General Motors stockholders, bondholders, creditors, independant dealers, etc.


2 posted on 08/20/2013 3:56:42 AM PDT by Iron Munro (To learn who rules over you, simply find out who you are not allowed to criticize - Voltaire)
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To: Oldeconomybuyer

The secret of being a good mechanics is tightening bolts until they break, then backing off a quarter turn.

Unions take this literally.


3 posted on 08/20/2013 3:58:32 AM PDT by Born to Conserve
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To: Oldeconomybuyer

Must negotiate with creditors....hmmmm doesn’t necessarily have to include ALL creditors does it? I bet if there were a million $1 creditors, they wouldn’t, would they?

Stands to reason that if the state appointed manager negotiated with enough creditors to whom the city owes SUBSTANTIAL CURRENT REAL DEBT, versus FUTURE pension liability debt, they’d get a clearer picture of the immediate problem. A problem that likely told the manager there wasn’t even a way out of the immediate debt. Screw the UNION pension.


4 posted on 08/20/2013 4:04:23 AM PDT by Gaffer
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To: Springman; cyclotic; netmilsmom; RatsDawg; PGalt; FreedomHammer; queenkathy; madison10; ...
There comes a point where not even the courts will help them. Meanwhile the EM of Pontiac announced that the city was ready to return to public hands 2 years early.(Full time city workforce cut from 500 to 20)

Pontiac begins transition out of financial emergency

Image Hosted by ImageShack.us

Michigan legislative action thread
5 posted on 08/20/2013 4:04:28 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Oldeconomybuyer

There is still no money even if they win this challenge.


6 posted on 08/20/2013 4:05:34 AM PDT by umgud (2A can't survive dem majorities)
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To: umgud

They’re trying to force a bailout that not even Obama will give them.


7 posted on 08/20/2013 4:10:12 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Oldeconomybuyer

the unions are a good part of the reason for the bankruptcy


8 posted on 08/20/2013 4:11:19 AM PDT by yldstrk (My heroes have always been cowboys)
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To: cripplecreek

They already got their share of stimulus and that didn’t save them. We can’t set the bailout precedent.


9 posted on 08/20/2013 4:12:06 AM PDT by umgud (2A can't survive dem majorities)
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To: Oldeconomybuyer
Meanwhile the fire department has stopped telling 911 operators how many ambulances are available so operators can't tell callers how long it will be.

LeDuff: Detroit Fire Department not reporting available ambulances
10 posted on 08/20/2013 4:13:14 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Oldeconomybuyer
With the obvious exception of uniformed members of the Armed Forces,military retirees and those getting *ordinary* Social Security payments (the original kind) it's pretty obvious that most of those getting any kind of government check are part of one huge multi trillion dollar scam that was set up and is managed and supported by the Rat Party!
11 posted on 08/20/2013 4:14:24 AM PDT by Gay State Conservative (If Obama Had A City It Would Look Like Detroit)
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To: umgud

Its astounding that they fought so hard against the new bridge being built by Canada. They fought it because the city one have any control of the money which means they won’t be able to get their usual cut.


12 posted on 08/20/2013 4:20:11 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: yldstrk
Just for fun, all hell broke out at a board of canvassers meeting. A white guy won the primary as a write in candidate and it led to police being called.

Canvassers begin reviewing Detroit primary election
13 posted on 08/20/2013 4:27:12 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Oldeconomybuyer

Been tried and already failed... deetroit is dead.


14 posted on 08/20/2013 4:31:23 AM PDT by LibLieSlayer (FROM MY COLD, DEAD HANDS!)
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To: Oldeconomybuyer

Lawyers....... they are money grubbing straw grabbers.

They milk the unions of irreplaceable funds while holding visions of the sugarplum past dancing before their eyes.


15 posted on 08/20/2013 4:33:22 AM PDT by bert ((K.E. N.P. N.C. +12 ..... Travon... Felony assault and battery hate crime)
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To: umgud
There is still no money even if they win this challenge.

Jim Manzi argues that millions of people are depending on promises that cannot possibly be kept. At the top of the list are people counting on municipal and state pensions, Social Security, and underfunded private pensions.

16 posted on 08/20/2013 4:36:49 AM PDT by Lonesome in Massachussets (Doing the same thing and expecting different results is called software engineering.)
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To: Oldeconomybuyer

Nothing in any constitution guards against going broke!

In unions dere is strength!


17 posted on 08/20/2013 4:38:59 AM PDT by relictele (A community vigilant in enforcing economic, racial and social equality. It was called Jonestown.)
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To: Lonesome in Massachussets

If not for the taxes and regulations a lot of these people could start small businesses to help themselves.


18 posted on 08/20/2013 5:15:30 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Lonesome in Massachussets

At the top of the list should be the citizens who own, pay taxes and run businesses in the city of Detroit. They are not receiving a fair share of services. Restore those services to adequate levels, all other obligations are secondary.


19 posted on 08/20/2013 6:09:16 AM PDT by outpostinmass2
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To: relictele

Except maybe some sort of provision to not spend any money they don’t have. Although, to be sure such text admittedly isn’t in every copy of every Constitution.


20 posted on 08/20/2013 6:12:40 AM PDT by coloradan (The US has become a banana republic, except without the bananas - or the republic.)
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To: Oldeconomybuyer
But as a midnight deadline for filing objections to the bankruptcy passed, Detroit's bondholders were conspicuously absent from the long list of unions, pension funds and individual creditors lining up to argue against bankruptcy.

The bondholders know that standard bankruptcy is the only path that will get them even pennies on the dollar. The unions want to grab ALL the assets and cash for themselves, as with GM.

21 posted on 08/20/2013 6:21:16 AM PDT by PapaBear3625 (You don't notice it's a police state until the police come for you.)
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