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Detroit Braces for Bankruptcy Ruling - New York Times

Posted: 03 Dec 2013 09:03 AM PST

By MONICA DAVEY

Published: December 3, 2013

DETROIT — A federal judge is expected to rule Tuesday on whether Detroit is eligible for bankruptcy protection, a crucial step in the city's effort to pay off part of its overwhelming debt and to begin rebuilding its vastly diminished city services.

The decision, which is to be issued by Judge Steven W. Rhodes of the United States Bankruptcy Court, is also a significant legal test for Detroit, which in July became the largest American city ever to seek bankruptcy protection.

If Detroit is ruled eligible to reorganize under court protection, lawyers for the city and its appointed emergency manager may move ahead in submitting a plan to pay off part of its debts and to start reinvesting in essential services. City officials have said such a plan could be filed before the end of the year, and that the city, once the nation's fourth largest, might emerge from bankruptcy in 2014.

Detroit's path forward will be far less clear if it is found ineligible to reorganize, a position favored by representatives of the city's labor unions.

Many legal specialists and government officials say they expect Detroit will be found eligible for bankruptcy protection. Under the provisions of municipal bankruptcy, a city must be deemed insolvent, a standard that many bankruptcy specialists say Detroit, which is buried beneath $18 billion in debts, is likely to meet. In fact, Detroit's filing marks the nation's largest municipal bankruptcy ever in terms of the size of the debt.

But a city must also show that it has negotiated in "good faith" with its creditors or is unable to negotiate with them because such talks are impracticable. Some public sector unions and retirees, who object to the possibility that their pensions may be cut, say Detroit's leaders never made an earnest effort to bargain, but rather intended to seek bankruptcy all along. Outside bankruptcy, the Michigan Constitution prohibits reducing pensions that public workers have already earned.

Whatever Judge Rhodes rules, the legal battles will be far from over. Any decision is likely to bring a number of appeals. If Detroit is found ineligible for bankruptcy protection, the city, which has already begun defaulting on some debt, is also likely to find a barrage of demands and lawsuits from its creditors.

While a legal determination that Detroit is so broke that it meets the standards for bankruptcy might seem an undesirable assessment for a major city that gave birth to the American auto industry, such court protection is seen by some as the city's best hope for revival: a chance under court supervision to reduce its debts, restore essential city services, and lay out a course for starting over.

In July, an emergency manager assigned by the state to oversee Detroit filed for bankruptcy with approval from Gov. Rick Snyder, a Republican in his first term.

To some observing the city's circumstances — annual operating deficits since 2008, a pattern of new borrowing to pay for old, a shrunken population and tax base, and diminished, undependable city services — there seemed no question that the situation was dire. A city of 1.8 million people in 1950, Detroit has fallen to a population of about 700,000, or the nation's 18th largest city. The city is plagued by vacant buildings, darkened streetlights, and slow police response times.

Paul Walker crash: Vin Diesel, 'Fast and Furious' cast speak - Los Angeles Times

Posted: 03 Dec 2013 08:05 AM PST

Actor Paul Walker's "Fast and Furious" costars and others involved in the movie franchise spoke Monday about the fiery crash that killed him and a friend over the weekend.

Among the cast mates who made pilgramages to Walker's burgeoning makeshift memorial in Santa Clarita was Vin Diesel, who addressed the crowd using the public address system of a sheriff's department patrol car.

"If my brother were here today. And if he saw all the love you were bringing here. If he could see for himself that [you have] shown my brother love," Diesel told the crowd.

PHOTOS: Celebrities react to the death of Paul Walker

Authorities were still investigating what caused the crash, which occurred about 3:30 p.m. Saturday on Hercules Street, a normally quiet road with a 45-mph speed limit. Walker's friend, Roger Rodas, was driving the 2005 red Porsche Carrera GT when it slammed into a tree and concrete pole, bursting into flames and killing both men.

Eyewitnesses have reported seeing only that red Porsche on the street at the time of the accident, according to the Los Angeles County Sheriff's Department.

The two had just left a charity event.

"It was 'Fast and the Furious,' that's what it is," witness and friend Jim Torp told fans and media at the crash site on Sunday. Both men were race car enthusiasts, Torp said, "both loved speed, both knew how to handle cars, and this had to happen."

PHOTOS: Paul Walker, 1973-2013

Fellow "Fast and Furious" costar Tyrese Gibson broke down at the memorial on Sunday after leaving a single flower. F. Valentino Morales, a producer who had been working with Walker on "Fast and Furious 7," also remembered the actor Sunday at the crash site.

"We were very close," Morales told KTLA, adding that Walker was "the nicest guy in the world."

"Everybody loved him," Morales said. "He'll be missed."

As news of the actor's death spread, hundreds of fans started streaming by the memorial on Sunday and Monday, leaving behind flowers, remembrances and photos. One fan left a green bottle of Castrol motor oil.

Alberto Ramirez, 19, of Downey was in Santa Clarita for a job interview and felt it was "the right thing to do" to come to the site.

"I was a fan since I was little watching his movies. I had to just stop by to take it all in. When I first heard it, I thought it was a hoax," he said.

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Kredit: www.nst.com.my

Selasa, 3 Disember 2013