Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Detroit decries creditors' request to delay bankruptcy plan
Author: Joel R. Glucksman
Date: April 11, 2014
Key Contacts
Back
Detroit is expected shortly to file an amended bankruptcy restructuring plan, which is anticipated to add details to emergency manager Kevyn Orr’s first version of the plan, according to Detroit Free Press. The amended plan will allow the city to leave bankruptcy with significantly less debt and to invest $1.5 billion over the next decade in blight removal, police and fire protection, and other essential needs.
The new plan may also provide new terms for creditors, as well as adjusted financial projections, according to the news source. New details about the terms of this ‘grand bargain,’ which involves a pledge of $815 million from foundations, the state government and the Detroit Institute of Arts to reduce pension cuts and keep the museum from selling its artwork, are also anticipated. The news source notes, however, that significant changes to the original plan are not expected.
Even so, Syncora Guarantee and Syncora Capital Assurance, which insure or have exposure to more than $600 million of Detroit’s debt, have requested an additional two weeks to review the amended disclosure statement for the new plan, according to The Detroit News. U.S. Bankruptcy Judge Steven Rhodes set a deadline of April 3 for creditors to file objections to the proposal, which Syncora argued only gives creditors 48 hours to review and object to the statement.
Detroit accused the creditor of employing a “scorched earth litigation strategy” to delay the city’s bankruptcy exit, the news source reported.
“Although it dresses up its request for relief as a plea for the preservation of due process, Syncora merely seeks more disruption and delay,” Detroit bankruptcy attorney Heather Lennox wrote, according to The Detroit News. ” … Syncora’s argument that the potential for relatively modest revisions to objections that parties have had nearly 40 days to prepare constitutes a deprivation of due process is not credible and generates far more heat than light.”
City spokesman Bill Nowling said that the city is confident that Judge Rhodes will keep to the court’s original April 3 schedule, the news source explained.
- Practices: Corporate Transactions & Business
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York
No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Author: Donald M. Pepe
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
Author: Jay McDaniel
The Legal Implications of Signing a Triple Net Lease
A triple net lease is a commercial lease in which the tenant pays the property’s real estate taxes, insurance, and maintenance costs, known as the three nets, in addition to base rent. They are most often used in freestanding retail and office buildings and in large single-tenant industrial properties, with terms that typically run 10 […]
Author: Donald M. Pepe
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
Author: Sean M. Pena
When Does a Business Need a Corporate Attorney?
A corporate attorney advises businesses on formation, ownership, governance, contracts, transactions, compliance, disputes, and the legal risks that arise as a company grows. The role is not limited to filing documents or reviewing agreements. A corporate attorney helps a business understand when a commercial decision has legal consequences, how to structure that decision properly, and […]
Author: Scarinci Hollenbeck, LLC
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Author: Sean M. Pena
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.