Al Jazeera America investigates overlooked stories of Detroit’s creditors

May 9, 2014
By
(Source: Wikimedia Commons)

(Source: Wikimedia Commons)

One unique aspect of bankruptcy is how, upon filing, all lawsuits against the debtor immediately stop. In Detroit’s case, after filing for Chapter 9 bankruptcy last summer, more than 500 lawsuits filed by ordinary people came to a halt. As Al Jazeera America notes today, the effect of this in a few particular instances is huge.

Like pensioners and bondholders, these tort claimants are unsecured creditors who can walk away from the bankruptcy with only a small fraction of what they are owed as the city seeks to resolve its mammoth debt. But unlike pensioners and bondholders, they have been excluded from the process, given no seat at the table in the high-stakes negotiations over Detroit’s bankruptcy or the plan that has them taking a staggering 80 percent cut.

It’s well worth a full read and shows an under-reported side to Detroit’s historic bankruptcy.

  • Dallas

    In before accusations of al Jazeera of being run by Muslim extremists

  • Los Angeles

    Don’t you think it’s time to give that a rest already. It’s getting old, Dallas

  • nobsartist

    First, I prefer to watch Al Jazeera over the amateurs on all Detroit news broadcasters. I am sick of watching the weather people dancing around and gesturing like a bunch of idiots, the constant shilling for sports teams and the immature, ex traffic girls acting like actual newscasters. As for the bankruptcy, the governor and his lacky’s, who will all be thrown out in November, don’t even have the legal right to implement the EFM law but who is going to stop the same political hacks who invented “no fault auto insurance”. Yes, the attorneys have all been paid their $36,000,000 in legal fees from last year alone, why not fuck anyone who had won a lawsuit against these same jackass’s? As a pont, I fail to understand how a bankrupt city can even afford to pay those fees if it is, actually bankrupt. At the same time, these same assholes give the mooching ilitch family who cannot pay back taxes to the tune of $75,000,000, another $250,000,000 AND a shit load of real estate to build another stadium that we don’t need and then stick taxpayers to pay for the mess they leave like they did with the Tiger Stadium disaster. But that point aside, when is Orr and tricky dicky going to get audited? I think this whole thing was planned from the beginning to grab up all of the valuable river front property, Belle Isle and anything else these greedy bastards can take for free along with bilking taxpayers for MILLIONS in legal fees. $600 per hour my ass.

  • nobsartist

    We don’t need any input from assholes that elect the mentally handicapped for governor. Stay in your shit hole of a state and keep your asshole opinions to yourself.

  • Anthony

    Nobsartist, thank you for commenting on the quality and state of local news stations. Local news here in Detroit, and I’m sure around the nation, is laughable, and I’m not sure why it’s even considered “news.” I’m glad Al Jazeera, a reputable worldwide news entity, investigated hidden aspects of Detroit’s bankruptcy. And as to Al-Jazeera’s legitimacy, Dallas, please, give it a rest already. I thought this topic was squashed in the last decade. Just because a media outlet has an Arabic name, is based in the Middle East name and reports on terrorist activities in the region doesn’t mean it’s affiliated with terrorism in any way. And in order for local news stations to be taken seriously, they need to stop pandering to the lowest common denominators in our society – like our friend Dallas.