Detroit disclosure statement hearing set for April 14, objection deadline for plan changed

By Lisa Kerner

Charlotte, N.C., Feb. 25 - City of Detroit's hearing to consider the approval of its disclosure statement will held on April 14 at 9 a.m. ET.

The deadline for filing objections to the proposed disclosure statement is April 1, according to a Tuesday filing with the U.S. Bankruptcy Court for the Eastern District of Michigan.

April 1 is also the amended date to file objections to the city's plan of adjustment, according to an additional filing with court. Previously, the court had set March 28 as the deadline for objecting to the plan and related disclosure statement.

Several parties had filed an objection to city's motion for approval of disclosure statement procedures. The parties included Syncora Guarantee Inc. and Syncora Capital Assurance Inc., Hypothekenbank Frankfurt AG, Hypothekenbank Frankfurt International SA, Erste Europaische Pfandbrief- und Kommunalkreditbank AG in Luxemburg SA, FMS Wertmanagement Aor and Michigan Counsel 25 of the American Federation of State, County and Municipal Employees, Sub-Chapter 98, City of Detroit Retirees.

According to the objection, the disclosure statement for Detroit's plan of adjustment "is incomplete by its own terms, failing to attach many, and necessary, non-public materials and documents referenced, incorporated and cited as exhibits."

The objecting parties said the city's proposed schedule precludes the possibility of any meaningful creditor discovery.

Plan confirmation hearing

As previously reported, Chapter 9 case judge Steven W. Rhodes set June 16 as the start date for city's plan of adjustment confirmation hearing, which will include the city's presentation of evidence establishing the feasibility of its plan and a trail on objections that raise factual issues.

Additional hearing dates, as necessary, will be June 17 through June 20 and June 23 through June 27.

Arguments on plan confirmation objections that raise only legal issues will be heard on April 28.

The city said it wants to emerge from bankruptcy at or near the end of emergency manager Kevyn Orr's term in September 2014.

The City of Detroit filed for bankruptcy on July 18, 2013. The Chapter 9 case number is 13-53846.

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