DETROIT (AP) - Some experts believe the time is right for serious talks aimed at solving a pension shortfall in Detroit's bankruptcy case.
Judge Steven Rhodes said Tuesday that pensions can be cut as part of an overall plan to bring Detroit out of bankruptcy. It's a blow to more than 20,000 retirees who argue that the Michigan Constitution offers complete protection.
Most city pensioners get less than $20,000 a year.
Former bankruptcy judge Melanie Cyganowski says a settlement would bring certainty to anxious retirees. Unions acknowledge that negotiation is important but they're pledging to appeal the judge's decision.
Detroit emergency manager Kevyn Orr says he understands the hardship. But he says the city doesn't have money to shore up pension funds that are underfunded by $3.5 billion.
WASHINGTON (AP) — There seems little appetite from either Democrats or Republicans in Washington for a federal rescue of the birthplace of the automobile industry. Detroit now stands as the largest American city ever to file for bankruptcy protection.
During the bleakest days of the Great Recession, Congress agreed in bipartisan votes to bail out two of Detroit's biggest businesses, General Motors and Chrysler.
Such a bailout would be huge, perhaps as much as $20 billion. Federal resources are strained, with the national debt at $16.7 trillion and the federal government struggling under the constraints of automatic spending cuts that took effect in March.
GGW Brands filed for Chapter 11 bankruptcy in Los Angeles Wednesday. The petition listed more than $16 million in disputed claims, including the nearly $6 million a judge awarded to Tamara Favazza in 2010.
Favazza had sued GGW subsidiaries Mantra Films and MRA Holding after she appeared in a "Girls Gone Wild" video. Favazza claimed that in 2004 someone working for the production company had lifted her tank top in front of the camera, and that she hadn't agreed to expose herself for the video. The incident happened at a downtown St. Louis bar.
Favazza’s lawyers are still battling to collect the judgement.