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Partner Craig Barbarosh Quoted in The New York Times on Proposed Cuts to Detroit Pension Checks

Firm News | May 14, 2014

Craig Barbarosh, a partner in the Insolvency and Restructuring practice, spoke with The New York Times regarding potential cuts to Detroit pensions. As part of an effort to emerge from bankruptcy, the city will be soliciting votes on its plan of adjustment from retirees, employees and bondholders. A "yes" vote would amount to a 4.5 percent cut for most retiree pensions and the elimination of cost-of-living increases, while a "no" vote could leave the decision to confirm the plan to a federal bankruptcy judge, with potential pension losses of up to 27 percent. Craig, who represents some creditors in the case but is not involved in talks over pensions, said it is unclear how Detroit retirees will respond to this choice: "In a situation like this, it’s complicated. There's a lot of information, and sometimes they need to resort to their own advisers to explain what's being proposed and how it will impact them."("Detroit Pension Ballot Poses Tough Choices," May 12, 2014)