Detroit’s his­toric bank­ruptcy trial be­gins

The Covington News - - THE WIRE -

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.

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