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Detroit Bankruptcy 'Cramdown' Could End Pension Fight

Metro Times

U.S. Bankruptcy Judge Steven Rhodes last week approved an agreement that has the city of Detroit paying $85 million to escape a disastrous interest-rate swap deal with two banks.

Detroit Emergency Manager Kevyn Orr, for one, applauded the decision.

“Today’s ruling is a victory for Detroiters that will help the city reinvest in the services it provides its residents and businesses,” Orr said in a prepared statement. “We’re making good progress in reaching consensual resolutions with our creditors and stakeholders.”

Added Judge Rhodes: “The amount of the settlement is entirely reasonable and fairly compromises claims of the parties.”

The implications of this ruling extend far beyond the $85 million settlement, but let’s start with that.

Read the report: Fast Food Failure: How CEO-to-Worker Pay Disparity Undermines the Industry and the Overall Economy