Detroit Gets More Time to Decide on Police Station LeasesSteven Raphael and Steven Church
Detroit, preparing for a final push to end its record-setting bankruptcy, won another 90 days to decide whether to keep or cancel leases on public buildings it uses, including a group of mini-police stations.
City officials today won the extended deadline from U.S. Bankruptcy Judge Steven Rhodes in Detroit. The city leases eight police-related buildings, including four mini-stations, as well as other locations. It asked to have until July 2 to decide on the leases.
Detroit will ask the judge April 14 to let it seek votes from retirees, bondholders and other creditors on a debt-reduction plan filed last month by emergency manager Kevyn Orr. That plan would reduce pensions to police officers, firefighters and other city employees and cut payments to bondholders.
The city filed for bankruptcy on July 18, listing $18 billion in debt and saying it couldn’t pay creditors while also providing basic services. Since then it has been in mediation with creditors trying to find a way to reduce debt and increase revenue.
The case is In re City of Detroit, 13-bk-53846, U.S. Bankruptcy Court, Eastern District of Michigan (Detroit).