Extra Litigation Costly, may delay Detroit Bankruptcy

Detroit has been reeling since filing for Chapter 9 bankruptcy in 2013. Emergency City Manager Kevin Orr recently went on record to say the deal made with creditor Syncora Inc. last month saved the city millions in court costs and stopped a delay that no doubt would have gone on for months if not years. At the start of last September, Detroit was able to come to terms with a deal with bond insurer Syncora Inc. to settle the $400 million debt. The deal made with Syncora Inc. includes long-term leases on a parking garage and tunnel between Detroit and Canada as well as cash.
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Bankrupt Bitcoin Exchange, Mt. Gox, extends date for creditors to file

The Japanese bankruptcy trustee, Nobuaki Kobayashi, handling the Mt. Gox bankruptcy case, has recently announced a six-month extension for creditors to file claims, in an attempt to recover lost moneys during the Mt. Gox bitcoin disappearance scandal.

What else does this extension mean?

While creditors have an extra six months to file claims, there will now also be an additional six months before any formal investigation into the bankrupt exchange is completed. Nobuaki Kobayashi had set the previous filing deadline for proofs of claim on the 28th of November, 2014. Essentially, the Mt. Gox trial has now been delayed until next year, with the investigation findings to be revealed on the 9th of September, 2015.

OKPay, a payment processing firm, has paid back some of the money lost during Mt. Gox’s collapse, to Mt. Gox. The $6,014,910 total consisted of withheld deposits from its customers, that OKPay held onto in the period immediately preceding Mt. Gox’s collapse. An OKPay representative told the public that it was instructed to pay Mt. Gox the $6,014,910 it was holding, through a court order.

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A bankruptcy adjustment plan has been voted on by creditors, to determine if the newly constructed proposal satisfies all parties involved in the 18 billion dollar city debt. U.S. Bankruptcy Judge Steven Rhodes was told the tabulation of the adjustment plan votes would be filed on the 24th of July this coming week.

The Detroit bankruptcy case has been increasingly difficult to follow, because of the large variety of entities that must be taken into consideration. While the city of Detroit is hoping to save around 7 billion through their bankruptcy, the longer the trial goes on the more expensive it becomes. A recent expert witness had her services valued at over 400,000 dollars, which Judge Steven Rhodes ordered the city to pay.
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