It’s never too early to forecast a legacy, and in today’s Detroit News, guest columnist Paul Alexander boldly predicts Detroit Emergency Manager Kevyn Orr is paving a path toward litigation.
…perhaps Orr’s legacy will be a plan that, instead of solving Detroit’s financial problems, will land the city in court fighting lawsuits for years to come.
Pensioners losing income and health care, the Detroit Institute of Arts if the collection is sold, bondholders who held general obligation bonds that the EM reclassified from secured to unsecured…Alexander finds all have good reason to pursue litigation because of how Orr’s Plan of Adjustment proposes to treat them.
Some have started the conversation:
Union officials have promised a lawsuit over pension and health benefit reductions. Lawyers for bondholders and their insurers have promised lawsuits as well. Indeed, one insurer filed a lawsuit earlier this week.
Detroit’s bankruptcy has been historic for any number of reasons. Perhaps its legacy of litigation will be added to that list.