DETROIT — Detroit’s bankruptcy trial has adjourned for the day and will resume in the morning.
Opening statements began Tuesday afternoon in federal court before Judge Steven Rhodes.
Bruce Bennett, one of the city’s lawyers, will resume on Wednesday morning. He said progress “has been made, but the city is still in distress.”
Detroit expects to cut $12 billion in unsecured debt to about $5 billion.
Most creditors, including more than 30,000 retirees and city employees, have endorsed the restructuring plan put together by state-appointed emergency manager Kevyn Orr and his team.
One of the keys is a commitment from the state, corporations and foundations to donate $800 million to soften cuts to city pensions.
Bond insurer Syncora Guarantee opposes the plan and says Detroit has unfairly discriminated against financial creditors.