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Detroit bankruptcy trial gets underway

Detroit's bankruptcy trial got underway on Tuesday and could last seven weeks.
By Heather Records   |   Sept. 3, 2014 at 12:22 AM   |   Comments

http://cdnph.upi.com/sv/em/i/UPI-9241409715103/2014/1/14060659046343/Detroit-bankruptcy-trial-gets-underway.jpg
DETROIT, Sept. 2 (UPI) -- The bankruptcy trial for the city of Detroit started on Tuesday. Opening arguments said progress is being made, but the city is still in distress.

The city's bankruptcy attorney, Bruce Bennett said Detroit's bankruptcy plan treats creditors equaitably and follows the bankruptcy code to help the city recover.

Detroit was ruled eligible for bankruptcy in December 2013 as a way to reorganize the city's massive debt of $18 billion.

Most creditors, including the city employees and more than 30,000 retirees like the plan put together by emergency manager Kevyn Orr and his team.

However, bond insurers Syncora and Financial Guaranty Insurance Co. are expected to argue during the trial that plan amounts to unfair discrimination against financial creditors.

The trial is could last seven weeks.

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