Kokomo Tribune; Kokomo, Indiana

Breaking News

State News

December 4, 2013

Judge: Detroit eligible for Chapter 9 bankruptcy

DETROIT (AP) — A judge ruled Tuesday that Detroit is eligible to shed billions of dollars of its long-running debt, including the pensions of thousands of workers and retirees, in a much-anticipated decision that shifts the city's epic bankruptcy case into a new and delicate phase.

Judge Steven Rhodes, who wondered aloud why the bankruptcy had not happened years ago, said pensions can be cut just like any contract because the Michigan Constitution does not offer bulletproof protection for employee benefits. But he signaled a desire for a measured approach and warned city officials that they must be prepared to defend any deep reductions.

"This once proud and prosperous city can't pay its debts. It's insolvent," Rhodes said in announcing that Detroit was formally eligible for the largest public bankruptcy in U.S. history. "At the same time, it also has an opportunity for a fresh start."

The ruling came more than four months after Detroit filed for Chapter 9 protection.

Rhodes agreed with unions and pension funds that the city's emergency manager, Kevyn Orr, did not negotiate in good faith in the weeks ahead of the July filing, a key condition under federal law. But he said the number of creditors — more than 100,000 — and a wide array of competing interests probably made that "impossible."

Detroit "could have and should have filed for bankruptcy long before it did. Perhaps years," the judge said.

The decision set the stage for officials to confront $18 billion in debt with a plan that might pay creditors just pennies on the dollar and is sure to include touchy negotiations over the pensions of about 23,000 retirees and 9,000 workers. Orr says pension funds are short by $3.5 billion.

Rhodes promised that he would not "lightly or casually" sign off on just any cuts.

The city has argued it needs bankruptcy protection for the sake of beleaguered residents who have for years tolerated slow police responses, darkened streetlights and erratic garbage pickup — a concern mentioned by the judge during a nine-day trial that ended Nov. 8.

Text Only | Photo Reprints
State News
  • Questions raise concern about school takeover law

    Changes could be coming to the law allowing Indiana to take over consistently failing schools to resolve confusion over who has the ultimate authority over the facilities and their students.

    July 26, 2014

  • Shortened summer cuts into tourism revenue

    Southern Indiana tourism sites are taking a hit this summer because of a harsh winter that pushed the school year into June and rainy weather to kick off the season.

    July 26, 2014

  • Deputy: No vehicle involved in fatal Cicero bike crash CICERO (AP) — Investigators say a 20-year-old bicyclist who was killed in a crash in a central Indiana town wasn't struck by a vehicle. Nicholas Camp of Cicero was pronounced dead at an Indianapolis hospital after he was injured in the crash in Cicer

    July 25, 2014

  • Man dies after being hit by sheriff's prisoner van INDIANAPOLIS (AP) — Police say a man has died after he was hit by a sheriff's department prisoner transport van on an Indianapolis street. City police spokesman Officer Christopher Wilburn says witnesses told investigators that the man was lying on t

    July 25, 2014

  • Holiday World plans new winged roller coaster SANTA CLAUS, Ind. (AP) — The Holiday World amusement park in southern Indiana says it's building a new roller coaster that will launch riders to 60 miles an hour in 3.5 seconds, with a 14-story loop among four inversions. Plans for the Thunderbird we

    July 25, 2014

  • Murder, rape charges filed in SW Indiana attack BLOOMFIELD (AP) — Prosecutors have charged a 35-year-old man with fatally shooting a man outside his rural southwestern Indiana home and then raping a woman inside the home. Greene County prosecutors filed murder, rape and other charges Thursday agai

    July 25, 2014

  • Teen Pilot-Crash [Duplicate] Family: Indiana teen pilot who crashed in ocean knew risks PLAINFIELD (AP) — Haris Suleman knew that flying around the world carried risks. But like adventurers before him, the 17-year-old pilot from Indiana also believed dreams aren't achieved without taking chances. "Why does any explorer undertake the nec

    July 24, 2014 1 Photo

  • Indy. Man who avoided prison time for rape resentenced INDIANAPOLIS (AP) — An Indianapolis man who was placed on home detention after being convicted of drugging and raping his then-wife is going to prison for violating his probation. The ex-wife of 52-year-old David Wise said she felt "sucker punched" b

    July 24, 2014

  • Judge rules Indiana hog farms protected by law WINCHESTER (AP) — A judge has ruled state law protects the operator of large hog farms from lawsuits filed by residents of an eastern Indiana county. The lawsuits against North Carolina-based Maxwell Farms accused it of allowing hog waste to accumula

    July 24, 2014

  • Ex-Indy officer appeals convictions in fatal crash INDIANAPOLIS (AP) — A former Indianapolis police officer is appealing his convictions for killing one motorcyclist and seriously injuring two others while driving drunk in his police cruiser. A brief filed by public defenders Wednesday claims the jud

    July 24, 2014

Latest news
Featured Ads
Only on our website
AP Video
Raw: Massive Dust Storm Covers Phoenix 12-hour Cease-fire in Gaza Fighting Begins Raw: Bolivian Dancers Attempt to Break Record Raw: Israel, Palestine Supporters Rally in US Raw: Palestinians and Israeli Soldiers Clash Raw: Air Algerie Flight 5017 Wreckage Virginia Governor Tours Tornado Aftermath Judge Faces Heat Over Offer to Help Migrant Kids Kerry: No Deal Yet on 7-Day Gaza Truce Kangaroo Goes Missing in Oklahoma More M17 Bodies Return, Sanctions on Russia Grow Gaza Residents Mourn Dead Amid Airstrikes Raw: Deadly Tornado Hits Virginia Campground Ohio State Marching Band Chief Fired After Probe Raw: Big Rig Stuck in Illinois Swamp Cumberbatch Brings 'Penguins' to Comic-Con Raw: Air Algerie Crash Site in Mali Power to Be Restored After Wash. Wildfire Crashed Air Algerie Plane Found in Mali Israel Mulls Ceasefire Amid Gaza Offensive
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Obituaries
Poll
Kelly Lafferty's video on Tom Miller