Quote Originally Posted by Novine View Post
"Without Orr's novel legal arguments, pensioners would automatically get in line behind both secured creditors and general obligation bondholders. With Orr's position, they and general obligation bondholders are on the same footing."

Interesting theory. But it's not backed up by the reality that the secured creditors of enterprise funds can depend on the revenues from those funds and the GO bondholders can go to court and force the city to levy the tax rate necessary to pay off those bonds. In neither case can the city argue that there's "no money" when there's both money and a legal mechanism to pay the debts.
Sure they can. That is exactly what they will argue. The question is will the argument work.