Page 2 - Corporate Restructuring & Bankruptcy

S2 | MONDAY, MARCH 3, 2014 | Corporate Restructuring & Bankruptcy
| NYLJ.COM

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that the amount could be signiicantly less.
How Detroit’s Chapter 9 BY PAUL J. LABOV On Dec. 5, 2013, over the objections of vari-
AND DANA G. HEFTER
ous pension plans and others, Judge Steven
W. Rhodes of the U.S. Bankruptcy Court for
the Eastern District of Michigan issued an O
n July 18, 2013, the city of Detroit
extensive opinion determining that Detroit made history as becoming the larg-
Case Could Affect was eligible to be a Chapter 9 debtor. In doing est U.S. city to file a petition under
so, Rhodes made certain indings relating Chapter 9 of the Bankruptcy Code.1 As in
to Detroit’s pension obligations which, if
many Chapter 9 cases, much of the debate

New York Municipalities
has focused on underfunded pension obli-
gations lowing from Detroit to an array of
PAUL J. LABOV is a partner and DANA G. HEFTER is pensioners. Indeed, in its bankruptcy peti-
an associate of Edwards Wildman Palmer in New tion, Detroit reported unfunded pension
York. Associates SARAH E. O’DEA and MICHAEL B. KIND obligations of approximately $3.5 billion,
assisted in the preparation of this article.
though the pension plans have suggested

Inside
Corporate Restructuring

And Bankruptcy
S4 SCOTUS to Rule S6 Utilizing Pre-Approved S8 Debtors’ Delusions
On Powers
Retainers Under
Of Bankruptcy
S
S
Of Bankruptcy Judges
Code Section 328
BY LESLIE BERKOFF
Kris Fischer, Editor-In-Chief
BY JEFFREY A. WURST BY SETH H. LIEBERMAN
Angela Turturro, Sections Editor
AND JON H. RUISS JR.
Monika Kozak, Design
SS

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