Detroit’s bankruptcy judge has proposed to hold a trial in October for the city’s retirees and bondholders to argue that Michigan law blocks the city from using the power of bankruptcy to cut more than $18 billion in debt. Read the Daily Bankruptcy Review article here.
Cantor Fitzgerald & Co. is objecting to American Airlines’s plan to exit Chapter 11 protection, which it warns may interfere with an approaching trial over whether it is owed damages in connection with the terrorist attacks of Sept. 11, 2001. Click here to read the article in DBR.
A group of shareholders of AgFeed Industries Inc. says that the company’s proposed $79 million sale significantly undervalues the hog producer. The DBR Small Cap article is available here.
(Daily Bankruptcy Review and DBR Small Cap are daily newsletters with comprehensive coverage and analysis of emerging and in-progress insolvencies and turnarounds. For a two-week trial, visit our homepage, scroll to the bottom and click “try for free.”)
Law Blog has more on how Detroit’s bankruptcy is affecting common thoughts about municipal debt.
Michigan’s attorney general doesn’t see conflict in representing Gov. Rick Snyder and Detroit’s retirees at the same time, despite the two groups’ opposing views on the city’s bankruptcy, Reuters reports.
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