Chapter 9 bankruptcy: Answers to key questions | Detroit Free Press | freep.com:
"Can union contracts be abandoned?
Yes. In fact, Chapter 9 bankruptcy makes it easier to slash labor deals than in Chapter 11 corporate bankruptcy.
Can city retirees lose their pensions?
Probably not completely. But there’s a chance that their monthly pension payments could be reduced. Orr is pursuing “significant” cuts to pensions. This will invite legal challenges.
Can city retirees lose health care insurance?
Yes. Or benefits could be reduced. Orr wants to shift retirees to the federal government’s new health care exchanges or to Medicare.
What happens to general obligation bondholders?
They can expect a fraction in return for their original investments. In most cases, bond insurers incur these losses."
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