Detroit’s historic bankruptcy trial begins
DETROIT (AP) — Opening statements in Detroit’s historic bankruptcy trial began Tuesday afternoon in federal court, where lawyers for the city will attempt to convince a judge that its plans to wipe out billions of dollars in debt should be approved.
Attorney Bruce Bennett, who is representing the city, went first during opening statements in U.S. District Court, saying though progress has been made, “the city is still in distress.” He also said the plan gives creditors all of value that the city can provide.
“All the revenue sources creditors can reach and are permitted to reach are exhausted,” Bennett told Judge Steven Rhodes.
The trial in U.S. District Court comes a little more than 13 months after Detroit became the largest U.S. city to file for bankruptcy. Detroit expects to cut $12 billion in unsecured debt to about $5 billion, according to Bill Nowling, a spokesman for state-appointed emergency manager Kevyn Orr, who has been in charge of the city’s finances since March 2013.