In re City of Detroit, No. 13–53846.
| Court | United States Bankruptcy Courts. Tenth Circuit. U.S. Bankruptcy Court — Eastern District of Michigan |
| Writing for the Court | STEVEN W. RHODES, Bankruptcy Judge. |
| Citation | 524 B.R. 147 |
| Parties | In re CITY OF DETROIT, Michigan, Debtor. |
| Docket Number | No. 13–53846. |
| Decision Date | 31 December 2014 |
524 B.R. 147
In re CITY OF DETROIT, Michigan, Debtor.
No. 13–53846.
United States Bankruptcy Court, E.D. Michigan, Southern Division.
Signed Dec. 31, 2014.
Bruce Bennett, Los Angeles, CA, Judy B. Calton, Honigman Miller Schwartz & Cohn LLP, Eric D. Carlson, Tamar Dolcourt, Timothy A. Fuscon, Eric B. Gaabo, Jonathan S. Green, Jeffrey S. Kopp, Foley & Lardner LLP, Stephen S. LaPlante, John A. Simon, Marc N. Swanson, Miller Canfield Paddock and Stone, P.L.C., Detroit, Robert S. Hertzberg, Deborah Kovsky–Apap, Pepper Hamilton LLP, Kay Standridge Kress, Southfield, MI, David Gilbert Heiman, Cleveland, OH, Heather Lennox, New York, NY, for Debtor.
Sean M. Cowley, Richard A. Roble, United States Trustee, Detroit, MI, for Trustee.
Brett Howard Miller, New York, NY, Geoffrey T. Pavlic, Mark H. Shapiro, Southfield, MI, for Creditor Committee.
Supplemental Opinion Regarding Plan Confirmation, Approving Settlements, and Approving Exit Financing
STEVEN W. RHODES, Bankruptcy Judge.
| Table of Contents |
|---|
| I. | Introduction | 159 |
| II. | The Plan Confirmation Process | 161 |
| A. | The City's Plans of Adjustment | 161 |
| B. | An Overview of the City's Eighth Amended Plan of Adjustment | 162 |
| C. | Objections Filed by Represented Parties | 163 |
| D. | The Participation by Unrepresented Parties | 165 |
| 1. | The Unrepresented Parties' Oral Presentations | 165 |
| 2. | The Unrepresented Parties' Participation in the Confirmation Hearing | 166 |
| E. | The City Tour | 166 |
| III. | The Settlements in the Plan | 167 |
| A. | Mediation | 167 |
| B. | The Applicable Law | 168 |
| C. | The Bard Considerations Applicable to All of the Settlements | 169 |
| D. | The Grand Bargain | 169 |
| E. | The State Contribution Agreement | 170 |
| 1. | The Potential Claim Against the State of Michigan | 170 |
| 2. | The Terms of the State Contribution Agreement | 170 |
| 3. | The State Contribution Agreement Is Fair and Equitable | 171 |
| a. | The State Contribution Agreement Is Reasonable in Amount | 171 |
| b. | The Releases in the State Contribution Agreement Are Reasonable | 172 |
| F. | The DIA Settlement | 176 |
| 1. | The Dispute over the DIA Art | 176 |
| 2. | The Terms of the DIA Settlement | 176 |
| 3. | The DIA Settlement Is Fair and Equitable | 177 |
| G. | The Pension Global Settlement | 179 |
| 1. | The Terms of the Pension Global Settlement | 179 |
| a. | The Treatment of Pension Claims | 179 |
| b. | Restoration of Pension Benefits | 180 |
| c. | Governance and Oversight | 180 |
| 2. | The Pension Global Settlement Is Fair and Equitable | 180 |
| H. | The Annuity Savings Fund Recoupment Settlement | 182 |
| 1. | The Dispute Over the Excess ASF Credits | 182 |
| 2. | The Terms of the ASF Settlement | 182 |
| 3. | Objections to the ASF Settlement | 182 |
| 4. | The ASF Settlement Is Fair and Equitable, and Does Not Violate the Bankruptcy Code | 183 |
To continue reading
Request your trial
-
In re G-I Holdings, Inc., Case Nos.: 01–30135(RG)
...NCL Corp. and Cellnet Data Sys. ). Ashland argues that the case at bar is more analogous to the court's decision in In re City of Detroit, 524 B.R. 147, 266–67 (Bankr. E.D. Mich. 2014).Lastly, with respect to the insurance proceeds that IES and ISP received in connection with their obligati......
-
Cashwell v. Town of Oak Island, 7:18-CV-109-FL
...unable to pay its debts, requiring it to declare Chapter 9 bankruptcy and drastically reorganize its finances. In re City of Detroit, 524 B.R. 147, 160 (Bankr. E.D. Mich. 2014) (confirming Detroit's reorganization). Detroit's financial difficulties caused its citizens numerous problems, inc......
-
In re G-I Holdings, Inc., Case Nos.: 01–30135(RG)
...NCL Corp. and Cellnet Data Sys. ). Ashland argues that the case at bar is more analogous to the court's decision in In re City of Detroit, 524 B.R. 147, 266–67 (Bankr. E.D. Mich. 2014).Lastly, with respect to the insurance proceeds that IES and ISP received in connection with their obligati......
-
Cashwell v. Town of Oak Island, NO. 7:18-CV-109-FL
...unable to pay its debts, requiring it to declare Chapter 9 bankruptcy and drastically reorganize its finances. In re City of Detroit, 524 B.R. 147, 160 (Bankr. E.D. Mich. 2014) (confirming Detroit's reorganization). Detroit's financial difficulties caused its citizens numerous problems, inc......