bankruptcy judge rejects big-ticket creditor claims
Send a link to a friend
[June 26, 2014]
DETROIT (Reuters) - Detroit is off
the hook for $150 million to buy garbage trucks that one resident
claimed or to compensate a California man $1 trillion for the loss of
nuclear research materials, a U.S. Bankruptcy Court judge ruled on
Judge Steven Rhodes, who is overseeing the city's historic
bankruptcy case, agreed with the city's objections to claims filed
by some individual would-be creditors.
The city characterized the claim for $1 trillion by Albert O'Rourke
of Oceanside, California, as frivolous. O'Rourke said the city had
lost or destroyed "Manhattan Project" nuclear research materials
housed in property he owns in Detroit. The claim amount was based on
the price tag for building various nuclear weapons and devices
related to the missing materials.
As for Lucinda Darrah, who requested the $150 million to purchase
garbage trucks so residents can manage their own trash disposal and
later amended her claim to $450 million for compensation for harmful
pollution from a city incinerator, the judge suggested she consult a
lawyer on how to substantiate her claims.
Late on Tuesday, Rhodes rejected claims by Rickie Allen Holt on
behalf of the Aboriginal Indigenous Peoples for $7 billion in
damages because Detroit failed to secure the peoples' "expressed
permission" to file for Chapter 9 municipal bankruptcy in July 2013.
[to top of second column]
Wednesday's hearing came as Detroit's case heads toward the Aug. 14
start of trial during which the city will defend the fairness and
feasibility of its plan to exit bankruptcy after adjusting $18
billion of debt owed mostly to customary creditors such as pension
funds, bondholders and businesses.
(Reporting by Cherie Curry; Additional reporting by Karen Pierog in
Chicago; Editing by Dan Grebler)
[© 2014 Thomson Reuters. All rights
Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.