Bankruptcy Judge Steve Rhodes on Friday approved a city plan to form a creditors’ committee of retired workers, but gave unions and pension funds that opposed the plan a measure of satisfaction by declaring that an independent trustee—and not the city—will select committee members, Reuters reported on Friday. Judge Rhodes also put off setting a date for a hearing on Detroit’s eligibility to file for bankruptcy, while Detroit lawyers disclosed an ambitious aim to present a plan for reorganization by the end of 2013. Detroit, whose course in bankruptcy court is being set by a state-appointed emergency manager, Kevyn Orr, set its target date at least three months earlier than the March 2014 deadline Judge Rhodes previously had proposed. Outside of court, Orr on Friday also proposed a new healthcare plan for city workers that would save Detroit $12 million annually by raising deductibles and trimming the number of available plans.
