When Detroit filed for protection under U.S. bankruptcy law, there were many negative reactions, one of the biggest being the opposition from the city’s pension funds.
They argued that the approval of Detroit’s suggested plan of reorganization would put the funds in financial jeopardy and result in the slashing of benefits for their members.
Michigan Gov. Rick Snyder has recently suggested a solution to try and win over the pension funds. According to Forbes, Snyder has pledged $350 million in state money, to be paid over 20 years to save the at-risk pensions for around 24,000 retirees in Detroit. The goal of this proposal is to help the city’s bankruptcy plan get approved more quickly, since winning over the pension funds would eliminate one of Detroit’s biggest opponents in bankruptcy court.
“Let’s put this behind us so we don’t have ongoing lawsuits … so we all can focus on growing Detroit,” said Snyder.
He added that this money won’t make retirees “whole,” but it could significantly help the burden that would be placed on these people if there wasn’t this type of financial aid available.
If this deal is agreed upon, there will be one less issue facing this bankruptcy filing; however, there are still a number of other obstacles, according to the Detroit Free Press.
First of all, the proposed state funding must be approved by the Michigan legislature in which many lawmakers oppose this financial bailout. Also, the Detroit pension boards need to agree to certain management changes required by Gov. Snyder. Unions, retirees and other parties also have to sign off on a deal to forgo any further litigation. In sum, Snyder’s proposal is welcome, but many “players” have to be brought on board before the deal can sail.
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
