FILE – In this July 22, 2013, file photo, Tony Brown, left, a Department of Transportation retiree, listens to union leaders talk about what Detroit’s bankruptcy filing means to thousands of retirees during a meeting in Detroit. Monday, Aug. 19, 2013, is the deadline for a host of banks, bond insurers, two employee pension systems and others standing to lose big if a federal judge declares Detroit insolvent to legally file their objections to the largest municipal bankruptcy in U.S. history. (AP Photo/Paul Sancya, File)
DETROIT (AP) — Banks, bond insurers, employee pension systems and others standing to lose big if a federal judge declares Detroit insolvent are expected to legally file their objections to the largest municipal bankruptcy in U.S. history.
Monday is the deadline for creditors to file eligibility objections to Detroit’s bankruptcy petition — marking the beginning of legal challenges for those hoping to recoup all or most of what Detroit owes them.
The deadline is just one of several steps that could lead to federal Judge Steven Rhodes allowing Detroit into bankruptcy protection while it restructures. Conversely, it also could spell disaster for the struggling city if its petition is denied, allowing creditors to sue Detroit if it defaults on payments, said bankruptcy expert Doug Bernstein.
State-appointed emergency manager Kevyn Orr filed for bankruptcy July 18. He claims the city has at least $18 billion in liabilities, from Login to read more