Detroit’s current and retired employees pleaded with the judge overseeing the city’s bankruptcy to limit the financial suffering they face from a reorganization plan that imposes $7.4 billion in cuts on them and other creditors, Bloomberg News reported yesterday. At the hearing, Bankruptcy Judge Steven Rhodes heard from city creditors who aren’t represented by lawyers in Detroit’s record $18 billion bankruptcy. Active and retired city workers, as well as investors, would be forced to take less than the $10.4 billion they are owed if Judge Rhodes approves Detroit’s plan. Judge Rhodes is to take their comments into consideration when he holds a trial next month on whether to approve the plan. Remaining opponents include bond insurer Syncora Guarantee Inc., which may have to cover losses imposed on bond investors, with some facing a recovery of as little as 11 percent.
