A federal judge said Detroit can move ahead with bankruptcy proceedings, a move which allows the city cut billions of dollars in payments that are owed to city employees, retirees, investors, and other creditors.
Emergency Manager Kevyn Orr, who oversees the troubled city’s finances, has proposed slashing more than $9 billion of $11.5 billion in unsecured debt, which could mean deep cuts to pension benefits and retiree health coverage, as CNNMoney reported.
Meanwhile, sources told Action 7 News that Detroit Fire Commissioner Don Austin, who adopted a “let it burn” policy towardvacantbuildings in the city, is leaving. The exact date has not been determined but could be by the end of he year.
Read more about the woes of Detroit athttp://cnnmon.ie/1eMkdj1andhttp://bit.ly/1cWWfjl.
For more on the city’s troubles, considerDetroit Bankruptcy Plan Would Leave Pensioners with 16 Cents on the Dollar,Paralyzed Detroit Firefighter to Lose Health Benefits, andArson Epidemic in Detroit.
