Detroit Emergency Manager Kevyn Orr said yesterday that he could force a legally binding settlement on the city's creditors if they were unwilling to accept a proposed restructuring plan in bankruptcy court, Reuters reported yesterday. The "cram down" provision of federal bankruptcy law allows a judge to approve a plan of restructuring over the objections of creditors, so long as at least one impaired class of creditors votes to confirm it. "We hope to reach a negotiated solution even now," Orr said as he took the witness stand on the fifth day of a trial to determine whether Detroit is eligible for chapter 9 municipal bankruptcy. "If we don't, we will address that situation and certainly 'cram down' is an opportunity available to us." If Bankruptcy Judge Steven Rhodes, who is overseeing the case, finds Detroit eligible for bankruptcy, the city will need to submit a plan of readjustment that must be approved by the court.
