Detroit Retirees Endorse Pension Cuts in Bankruptcy; City Praises ‘Positive Decision’

Detroit Retirees Endorse Pension Cuts in Bankruptcy; City Praises ‘Positive Decision’

A street sign showing Detroit’s city limits is shown near where a former Chrysler McGraw glass plant is being torn down along Ford Road in Detroit, March 22, 2011. (AP)
A street sign showing Detroit’s city limits is shown near where a former Chrysler McGraw glass plant is being torn down along Ford Road in Detroit, March 22, 2011. (AP)

 

DETROIT (Fox Business) –  A year after filing for bankruptcy, Detroit is building momentum to get out, especially after workers and retirees voted in favor of major pension changes just a few weeks before a judge holds a crucial trial that could end the largest public filing in U.S. history.

Pension cuts were approved in a landslide, according to results filed shortly before midnight Monday. The tally from 60 days of voting gives the city a boost as Judge Steven Rhodes determines whether Detroit’s overall strategy to eliminate or reduce $18 billion in long-term debt is fair and feasible to all creditors.

Trial starts Aug. 14.

“I want to thank city retirees and active employees who voted for casting aside the rhetoric and making an informed, positive decision about their future and the future of the city,” said Kevyn Orr, the state-appointed emergency manager who has been handling Detroit’s finances since March 2013.

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