Detroit bankruptcy goes into critical stage this week

Associated Press Published:

DETROIT -- Detroit's bankruptcy goes into a critical stage this week after Michigan Gov. Rick Snyder signs off on a $195 million lifeline to prevent steep cuts in the city's pensions and sale of city-owned art.

Attention now turns to creditors, especially 32,000 active, former or retired employees, who have until July 11 to vote on the city's plan to shed $18 billion in debt and become solvent again.

Retirees with pensions at risk have received a computer disk holding hundreds of pages. They have a ballot about pension cuts and another about health insurance.

Public forums about the balloting have turned hostile with people venting about the financial sacrifice.

The bankruptcy trial is scheduled for July 24.

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