An independent federal trustee helping to administer Detroit's historic bankruptcy case named a committee to represent interests of the unsecured creditors as the city prepares to submit a plan to the court to readjust its debt, Reuters reported yesterday. U.S. Trustee Daniel McDermott named five creditors to the committee: Detroit's two pension funds (which are its largest unsecured creditors), bond insurer Financial Guaranty Insurance Company, contract administrator Wilmington Trust Company and an individual creditor, Jessie Payne. The committee was created in order to ensure all unsecured creditors are ably represented. Bankruptcy Judge Steven Rhodes appointed a creditors’ committee of retired workers in August to represent the more than 20,000 city retirees throughout the bankruptcy proceedings. Detroit is paying the retiree committee's expenses.
