USA TODAY: Detroit announced settlements Friday with a group of holdout unsecured bondholders and the city’s largest union, moves that put the Motor City a step closer to exiting bankruptcy.
The deals also may encourage more workers and retirees to approve the city’s grand bargain aimed at reducing pension cuts and rescuing the Detroit Institute of Arts…
“The settlement was reached after intensive negotiations spanning more than six months, sessions in which the parties’ interests were fully and vigorously represented and all issues robustly negotiated,” the mediators said in a statement. “With this settlement, only a few remaining, albeit significant, disputes remained to be addressed between the city and its creditors prior to the bankruptcy court’s scheduled hearing on the city’s plan of adjustment.” … (more)
EDITOR: This is what should have taken place with Harrisburg, PA. But Gov. Tom Corbett was determined to protect the city’s creditors and came up with schemes that passed the cost on to tax payers state wide and to Lancaster, County through an wildly inflated price for the long troubled, environmentally challenged, Harrisburg incinerator.
Why? In turn, grateful creditors will help fund his re-election campaign.
