Detroit workers, retirees vote in favor of city’s debt plan

[unhappycamper]

http://www.rawstory.com/rs/2014/07/22/detroit-workers-retirees-vote-in-favor-of-citys-debt-plan/



Detroit workers, retirees vote in favor of city’s debt plan
By Reuters
Tuesday, July 22, 2014 4:46 EDT

Detroit’s city workers and retirees overwhelmingly agreed to accept the city’s debt adjustment plan, according to results filed late Monday, potentially clearing the way for the struggling city to exit bankruptcy in the next few months.

Documents filed in U.S. Bankruptcy Court show the city’s current and retired police and fire employees, along with other active and retired city workers, will accept pension reductions to help adjust $18 billion in debt in the largest-ever U.S. municipal bankruptcy case. Most bondholders rejected the plan, along with insurers backing some of the debt.

The city declared that the “overwhelming” vote by members of its two retirement systems to accept changes to their pensions puts it on track for a coming trial to determine whether the plan is fair and feasible. That phase is scheduled to begin on Aug. 14, overseen by Judge Steven Rhodes.

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A rejection of the plan would have dissolved the grand bargain, leaving retirees with bigger pension cuts.