Creditors wrapped up voting Friday on Detroit emergency manager Kevyn Orr's bankruptcy restructuring plan for the city, a key move ahead of its upcoming bankruptcy trial. Ballots had to be received by 5 p.m. EDT by a consulting company in California to be counted in the largest municipal bankruptcy in U.S. history. The bankruptcy court has set July 21 as the date for it to receive the voting results. About 32,000 retirees, current and former city workers were asked to vote on a proposal to cut pensions for non-uniformed retirees by 4.5 percent and erase cost-of-living allowances. The proposal also eliminates some cost-of-living payments for retired police and firefighters. More "no" than "yes" votes could result in deeper pension cuts. The city's bankruptcy trial starts next month. Without a confirmation of Orr's plan — or other plans down the road — the city's bankruptcy could be dismissed, said Michael Sweet, a bankruptcy attorney with Fox-Rothschild's San Francisco office. "The alternative would be very bad," he said. "Without a plan there would then be a race to the courthouse by creditors" to get the money they're owed.
Sign up for top Business news direct to your inbox.
IN-DEPTH
Automakers to Help Save Detroit's Art Treasures
Tapped Out Detroit Residents in Water Fight With City
Michigan Senate Approves $195M for Detroit Bankruptcy
-The Associated Press
