U.S. government objects Detroit's bankruptcy plan
DETROIT – Detroit's final plan to move out of Chapter 9 bankruptcy will be on its way to creditors soon. But Monday night, perhaps the highest profile creditor of them all has filed paperwork objecting to the plan.
That objection came from the U.S. government, filing late Monday evening.
Creditors filing objections to the plan is to be expected. Oakland filed a 45-page objection and Macomb filed a 26-page objection.
Housing and Urban Development also filed its objection to the plan with a discrepancy in what they are owed. According to the plan Kevyn Orr submitted, the emergency manager of the city got the price tag at $90 million. However, The feds said it's $112 million.
But those with knowledge of the talks between the city and the federal government told Local 4 they don't think the government's objection is going to put a serious wrench into the process, and that talks that are ongoing will clear up exactly what dollar figure is owed.
The Macomb and Oakland filings are about the unhappiness with plans for the Detroit water department. The initial talks to spin off the system into a regional authority with the surrounding counties has gone nowhere. But experts say it's unlikely the process will be derailed.
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