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.
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
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 […]
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!
