Except, in the Delphi bankruptcy, salaried retirees lost up to 60% of their benefit when Delphi dumped them to the PBGC.jack1719 wrote:Bondholders are gonna be the ones that take the biggest haircut,retirees with pensions etc...judges seem to understand that these are real people,alot of elderly etc.. and very little if anything will pensioners be asked to cut,a judge might feel the need for everyone to contribute to cutbacks,so he might make a tiny cut to them,but if you look at cases in other towns that have filed for bankrupty,its gonna be pretty much that same path...GM bankruptcy retires,pensionsers etc..pretty much got off scott free,it really didn't have to do with bailout money either.
the big question is how much of black eye will this be to bonds and bond holders now and in future..
Note that there is no government PBGC guarantee for Detroit pensions. The lawsuits claim that they are protected by the State constitution. We shall see.
Keith