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Battle heats up between Detroit's creditors, pensioners

A image of the Detroit skyline is seen on the podium where Detroit Emergency Manager Kevyn Orr and Michigan Governor Rick Snyder addressed the media about filing bankruptcy for the city of Detroit during a news conference in Detroit, Michigan July 19, 2013.
Credit: Reuters/ Rebecca Cook
A image of the Detroit skyline is seen on the podium where Detroit Emergency Manager Kevyn Orr and Michigan Governor Rick Snyder addressed the media about filing bankruptcy for the city of Detroit during a news conference in Detroit, Michigan July 19, 2013. Credit: Reuters/ Rebecca Cook

DETROIT (WKZO) -- The battle between Wall Street investors and City of Detroit pensioners in the city's bankruptcy case is heating up.

Creditors argue that many of the bonds issued by the city are a secured debt which will have to repaid. Retirees argue that their pensions should be placed above any other debt and are ultimately protected by the U.S. Constitution. They also say those who invested in bonds issued by the city knew of the financial problems in Detroit.

Governor Rick Snyder and Detroit Emergency Manager Kevyn Orr have both made moves that concern creditors. Snyder pledged 350-million in state assistance for pensioners while Orr has filed a lawsuit to invalidate a debt deal struck in 2005.

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