Detroit bankruptcy blueprint gives edge to retirees over bankers, bondholders
The plan of adjustment, a document that is common in Chapter 9 bankruptcy, contains information on the citys initial offers to creditors, including banks, bondholders, retirees, unions and city vendors. The plan of adjustment makes it clear that the city wants to reclassify the complex interest-rate debt it owes to UBS and Bank of America Merrill Lynch as unsecured debt rather than secured claims. The city has been trying for months to pay off the so-called swaps, but Judge Steven Rhodes has twice rejected the proposal as too generous and has questioned the legality of the original deal. The city is still in negotiations with those banks to reach an agreement that is substantially lower than the $165 million that it previously agreed to pay following mediation sessions with U.S. District Judge Gerald Rosen. But those negotiations occurred with the debt classified as secured. Financial details of the plan of adjustment are subject to change depending on progress the city makes in ongoing, confidential mediation talks, brokered by Rosen. The plan of adjustment is the blueprint of how the City of Detroit plans to dig itself out of $18 billion in debt and projected long-term liabilities. On July 18, Detroit became the largest municipality to declare bankruptcy in U.S. history.
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28, 2014 3:06 p.m. ET The Roman Catholic Diocese of Stockton, Calif., which is the 10th Catholic diocese in the U.S. to enter Chapter 11 protection as a result of increasing sexual-abuse claims, has received a judge’s approval of its initial bankruptcy requests. The ruling by Judge Christopher M. Klein of the U.S. Bankruptcy Court in Sacramento, Calif., on Friday will allow the diocese to continue to pay its 37 salaried employees and seven hourly…
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How to Know When Bankruptcy Is Your Best Option
Two people who have reviewed the document said that the details cannot be distributed publicly because of a confidentiality order from Rhodes, who is overseeing Detroit’s historic Chapter 9 proceedings. The plan distributed to creditors participating in the court-ordered mediation reflects some of the discussions the city and its creditors have held to date and offers a good platform for those discussions moving forward. City of Detroit statement The city’s retirees are likely to endure pension cuts despite a deal being hammered out among nonprofit foundations, city government and the Detroit Institute of Arts to provide more than $800 million to help retirees and allow the museum to become a separate entity. The museum also revealed Wednesday that it has pledged to raise $100 million to contribute to the potential grand bargain. Bankruptcy mediator Gerald Rosen, who is negotiating potential settlement deals among the city and its creditors, praised the Detroit Institute of Arts contribution Wednesday but signaled that pension cuts still are likely. It was not immediately clear whether the initial version of the plan of adjustment includes information on proposed pension cuts or how they will be structured. The city has about 24,000 retirees.
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Toni Braxton Buys $3 Million House Months After Bankruptcy Settlement (REPORT)
Credit: Reuters/Ernest Scheyder (Reuters) – Chemical maker W.R. Grace & Co (GRA.N) received approval to line up about $1.55 billion in bankruptcy exit financing, a court filing showed on Tuesday. Grace will use the money to pay all outstanding claims, including $1.1 billion to its lenders, removing the last obstacle to its emergence out of bankruptcy protection. The remaining amount will go towards funding trusts that will be created to pay asbestos-related injury claims, an earlier court filing showed. The company is likely to emerge from bankruptcy on January 31. Grace filed for Chapter 11 protection in 2001, making it one of the longest bankruptcies in the history of the United States, after an asbestos leak at one of its mines led to a slew of lawsuits. The case is W.R. Grace & Co, et al, Case No. 01-01139, U.S.
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Detroit sends its plan out of bankruptcy to creditors
AIn the end, something has to give and http://ift.tt/LhYrtx you stop paying for the past so that you can live in the now. ABut it is not that easy a especially in the current environment of aggressive debt collectors and the rise of the debt buying industry . Bankruptcy is a difficult decision to make. ABut sometimes it is terribly necessary. AFiling for bankruptcy will put an immediate stop to the stress you currently feel and give you something you havenat had in years a time to catch your breath. Imagine getting your paycheck and not having to decide what bills not to pay. AImagine not having a physical reaction every time the phone rings. AImagine being able to have hope for the future. Bankruptcy is not pain free.
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Kellogg Foundation to Help in Detroit Bankruptcy
Kellogg Foundation is giving $40 million to prevent the sale of Detroit art and help city retirees, raising the pool of money to $370 million. The announcement was made Tuesday by a coalition of foundations. The group wants to continue to attract financial support from foundations and individuals while Michigan Gov. Rick Snyder tries to win approval for $350 million from the state. City-owned art at the Detroit Institute of Arts could be vulnerable to sale in Detroit’s bankruptcy.
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Bankruptcy – Stop Living in the Past
Prior to that, she filed for bankruptcy in 1998. During a 2012 interview with ABC News, the 46-year-old blamed her money woes on business issues and a home-decor addiction. “I love dishes and house things, so I kind of lost it a little bit on the houseware,” she said, adding that she spent her money on plates, Faberge eggs and 1,000 thread-count sheets . “That’s what I indulged in. I loved that part of it.
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WR Grace’s bankruptcy exit financing deal gets court approval
You’re insolvent If you’re insolvent, or unable to pay your debt, your debt liabilities exceed the fair market value of your total assets. Whether your income and financial assets simply won’t be enough to get you out of the hole, or you’ve overspent to the extent that you literally cannot manage to pay off your debt, being insolvent cannot be easily changed, and is a big indicator that bankruptcy may be the most plausible option for you. You meet the following criteria Bankruptcy, specifically Chapter 7, is designed to help you entirely eradicate unsecured debts such as credit card and medical bills. Another sign that you’re ready to file for bankruptcy is how frustrated you are with aggressive collection calls and notices, which make trying to live a normal life difficult. Additionally, if you don’t own that much property, you won’t lose as much, as Chapter 7 makes you susceptible to having property seized, though there are exemptions that may possibly allow you to stay within your home. Finally, if you have a low credit score, bankruptcy won’t drastically change your score rating, and once your debt is discharged, you can start from scratch and improve your score. The takeaway It’s important to make the distinction between Chapter 13 and Chapter 7 bankruptcy.
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