August 19th , 2013 11:03 am Leave a comment

Creditors reach deadline to object to bankruptcy

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DETROIT (AP) — The deadline day has arrived for creditors to oppose Detroit’s request for bankruptcy protection.

Federal Judge Steven Rhodes has set Monday as the eligibility objection deadline in the bankruptcy petition by Detroit’s state-appointed emergency manager Kevyn Orr.

Creditors include bond holders, insurers, banks, the city’s two employee pension systems, individuals and companies.

Orr says Detroit is insolvent and unable to pay off all of its debt which could be $18 billion or more.

The city has until Sept. 6 to file its responses to the objections. A multi-day hearing on the eligibility question is scheduled to start Oct. 23.

Orr was hired by the state as emergency manager in March. He filed for bankruptcy on July 18, making Detroit the largest city in U.S. history to do so.

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