NEW YORK (Reuters) - Lehman Brothers Holdings Inc on Monday filed a plan with the U.S. bankruptcy court in Manhattan to wind down its remaining assets and operations -- and end the largest U.S. bankruptcy case in history.
At long last, beleaguered taxpayers will not have to put up with nonsense from public unions about the sanctity of pensions.In spite of Michigan constitutional provisions, the federal judge presiding over the Detroit bankruptcy filing not only ruled the city filed in good faith, but more importantly, stated that the a provision in the Michigan Constitution protecting public pensions isn't a bulletproof shield in a bankruptcy.
The administrator for failed Wall Street giant Lehman Brothers has filed plans to end the largest bankruptcy in US history, opening the way for the creation of a new company."The proposed plan represents a fair economic resolution for all Lehman creditors and will accelerate recoveries to creditors," said Bryan Marsal, chief executive and chief restructuring officer of Lehman Brothers Holdings, in a statement on Monday.
On Friday, a Michigan Circuit Judge Rosemarie Aquilina ruled Detroit bankruptcy is unconstitutional.
On Friday, a circuit court judge in Ingham County ruled that Detroit's federal bankruptcy filing violated a part of Michigan's constitution that protects union pensions. She ordered it withdrawn, a day after Detroit became the largest U.S. city in history to file for chapter nine bankruptcy.
For those who missed it, in the Kevyn Odd statement listing the primary reason for the bankruptcy of Detroit, this was the punchline: "Absent restructuring, the City is projecting cash flows of negative $198.5 million in the current 2014 fiscal year and negative $260.4 million in fiscal year 2015.
Detroit’s public-employee pension funds, bondholders, bond insurers, vendors, retirees and legions of others expected to oppose the city’s bankruptcy filing have until the end of the day on Monday to file objections in U.S. Bankruptcy Court.
So far, only a few former city workers have filed objections with the court in Detroit ahead of the deadline of 11:59 p.m. Eastern Time set by Judge Steven Rhodes, who oversees the case.