Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comKey Contacts
Back
One year after his appointment as Detroit Emergency Manager, Kevyn Orr is confident that Detroit will bounce back. According to Reuters, Orr predicts that the city’s plan to get out from under its $18 billion of debt will win court approval by this fall. There are a number of obstacles still standing in the way, including a vote by the city’s pensioners and a legal dispute over credit swap agreements, but Orr believes these obstacles can be overcome.
“We hope to have the hearing completed by the middle of August or so,” Orr said during a March 24 event on Detroit’s bankruptcy filing at the Manhattan Institute, according to the news source. “The court would either approve or disapprove – we hope it’s going to approve – that plan after the hearing in August, hopefully by the fall.”
Many of the benefits of the city’s Chapter 9 filing won’t be seen by its residents until after the hearing, according to Detroit Free Press. However, the city is no longer “borrowing from the pension funds and calling that revenue when it’s actually debt at 8 percent,” said Orr in an interview.
“Contrary to some of the predictions when we started out that this (bankruptcy) was going to wreck the city, au contraire, we have lenders that are willing to do business with the city even now on competitive rates and terms,” Orr told the news source. “That is helpful for the city. We are paying our bills on time for the first time in a long time.”
U.S. bankruptcy Judge Steven Rhodes has already rejected two of Orr’s proposals on the ground that they were too expensive for Detroit to afford, according to The Wall Street Journal. This proposal may be looked upon more favorably, but will still probably face opposition from Syncora Guarantee, a company that insured some of the city’s pension debt.
“They have an opportunity to file their objection and the court is going to hear this,” said Orr. “Hopefully third time is a charm.”
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
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
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 […]
Author: Jesse M. Dimitro
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, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
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.
Kevyn Orr confident for Detroit
Author: Joel R. Glucksman
One year after his appointment as Detroit Emergency Manager, Kevyn Orr is confident that Detroit will bounce back. According to Reuters, Orr predicts that the city’s plan to get out from under its $18 billion of debt will win court approval by this fall. There are a number of obstacles still standing in the way, including a vote by the city’s pensioners and a legal dispute over credit swap agreements, but Orr believes these obstacles can be overcome.
“We hope to have the hearing completed by the middle of August or so,” Orr said during a March 24 event on Detroit’s bankruptcy filing at the Manhattan Institute, according to the news source. “The court would either approve or disapprove – we hope it’s going to approve – that plan after the hearing in August, hopefully by the fall.”
Many of the benefits of the city’s Chapter 9 filing won’t be seen by its residents until after the hearing, according to Detroit Free Press. However, the city is no longer “borrowing from the pension funds and calling that revenue when it’s actually debt at 8 percent,” said Orr in an interview.
“Contrary to some of the predictions when we started out that this (bankruptcy) was going to wreck the city, au contraire, we have lenders that are willing to do business with the city even now on competitive rates and terms,” Orr told the news source. “That is helpful for the city. We are paying our bills on time for the first time in a long time.”
U.S. bankruptcy Judge Steven Rhodes has already rejected two of Orr’s proposals on the ground that they were too expensive for Detroit to afford, according to The Wall Street Journal. This proposal may be looked upon more favorably, but will still probably face opposition from Syncora Guarantee, a company that insured some of the city’s pension debt.
“They have an opportunity to file their objection and the court is going to hear this,” said Orr. “Hopefully third time is a charm.”