Detroit eligible for bankruptcy

Judge says city is insolvent, public pensions not exempt

Posted: December 4, 2013 at 5:29 a.m.

Cecily McClellan, a Detroit public retiree, speaks out Tuesday against the ruling allowing Detroit’s bankruptcy plan to proceed. The ruling turned aside objections from unions, pension funds and retirees who stand to lose benefits.

Detroit is eligible to shed billions in debt in the largest U.S. public bankruptcy, a federal judge ruled Tuesday, while also finding that the public pensions could be reduced during reorganization despite a provision in the Michigan Constitution.

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Front Section, Pages 1 on 12/04/2013


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