Detroit creditors say plan of adjustment is incomplete

By Rod Meloni, Local 4 Business Editor, @RodMeloni
Published On: Feb 25 2014 05:50:41 PM EST
Updated On: Feb 25 2014 07:38:15 PM EST

The city of Detroit's plan of adjustment which was filed this past Friday -- along with its disclosure statement -- is more than 500 pages.

DETROIT -

The city of Detroit's plan of adjustment which was filed this past Friday -- along with its disclosure statement -- is more than 500 pages.

Yet, attorneys for city creditors say it is incomplete. They want to see the exhibits the plan mentions but doesn't show.

View/download: Plan of Adjustment

The city says most are in there and the rest are forthcoming.

Still, objector attorneys, led by Robert Gordon of Clark Hill, were asking Judge Steven Rhodes for a delay. Gordon said "it is not a disclosure statement ... the document is so inadequate on its face.

"I have never seen a disclosure statement this devoid -- the exhibits are missing," said Gordon.

He didn't say how much time he was seeking but it didn't much matter as Judge Rhodes hinted he likely is going to stick with the schedule he has set.

"The problem with delay is the city does not have the money to pay you in two months or even four months," said the judge. "This is not a retail operation with the Christmas season coming."

He was making a reference to the more common Chapter 11 bankruptcies which is practiced by most of the attorneys he is dealing with.

However, the judge also told the city it needed to include more in the disclosure.

"In my experience there are two facts creditors are interested in -- How much am I going to be paid and when?" he said.

The city said it would comply.

Judge Rhodes didn't rule on Tuesday. Meanwhile, there was another admission from the city: It knows the legal documents are filled with a lot of legalese but said it will be including a separate printed supplement for retirees to understand how the bankruptcy will affect them.

Judge Rhodes has scheduled the bankruptcy exit plan trial for June.

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