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.
SEC Takes Actions Against Issuers for Failure to File Form D
In December, the U.S. Securities and Exchange Commission (SEC) announced charges against two privately held companies for failing to file a Form D notice, which is generally utilized for exempt securities offerings. Here, the SEC’s enforcement sends a strong message: compliance with regulatory requirements is not optional and failure to comply can have significant consequences. […]
Redefining Labor Relations: NLRB's Pivot from Abruzzo’s Memoranda
On February 14, 2025, the Office of General Counsel (OGC) of the National Labor Relations Board (NLRB) under Acting General Counsel William B. Cowen issued Memorandum 25-05, “New Process for More Efficient, Effective, Accessible and Transparent Case handling.” The Memorandum rescinds nearly all of the Memoranda issued by his direct predecessor, Jennifer Abruzzo, setting the […]
If you purchase real property from a foreign person or entity, you may be required to withhold taxes from your payment to the seller under the Foreign Investment in Real Property Tax Act (FIRPTA). The federal tax law is designed to ensure that foreign sellers pay any applicable capital gains tax on profits realized from […]
Does Your Homeowners Insurance Provide Adequate Coverage?
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Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
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