Detroit’s Pitch for a Pension Pinch

Detroit’s bankruptcy case has shaken up the bond market. The writing is on the wall: Detroit will probably succeed in reducing its pension obligations. In hopes of restructuring its debt, Detroit filed a bankruptcy case under Chapter 9 of the Bankruptcy Code. Chapter 9 follows the familiar path of Chapter 11 in many ways, but Detroit will face several unique challenges as it attempts to apply some of the Bankruptcy Code’s hallmark provisions.