Detroit bankruptcy trial resuming; judge must decide if exit plan is fair, feasible

Associated Press

A trial to determine Detroit's path out of bankruptcy is entering its first full week after four days of evidence last week.

Judge Steven Rhodes heard from the city's chief financial officer as well as a consultant who talked about a plan to use $1.7 billion to improve services over the next decade.

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The judge must decide whether Detroit's plan is fair and feasible. Virtually all creditors, including thousands of retirees, are endorsing it, although bond insurers are opposed because their losses would be significant.

Emergency manager Kevyn Orr has been sitting front and center at the trial and is expected to testify at some point. He took Detroit into bankruptcy last year with the blessing of Gov. Rick Snyder.