Maintenance. We are currently updating the site. Please check back shortly
Members login
  • TrustLaw
  • Members Portal
Subscribe

Dec. 16 hearing set to consider Detroit bankruptcy appeals

Source: Reuters - Mon, 9 Dec 2013 10:56 PM
Author: Reuters
Tweet Recommend Google + LinkedIn Bookmark Email Print
Leave us a comment

DETROIT, Dec 9 (Reuters) - The U.S. judge overseeing Detroit's bankruptcy on Monday set a hearing for Dec. 16 to consider whether to expedite appeals of his ruling that declared Detroit eligible for bankruptcy protection, allowing the appeals to proceed straight to the U.S. 6th Circuit Court of Appeals.

U.S. Bankruptcy Judge Steven Rhodes will hold a hearing at 10 a.m EST (1500 GMT) to take up requests from city unions, retirees and pension funds to avert the U.S. District Court for the Eastern District of Michigan and go to the appeals court.

"A swift appellate resolution of whether the City may proceed in Chapter 9 bankruptcy is of paramount importance to the City's retirees and employees, whose pension and other employment benefits may be subject to substantial impairment in the case," attorneys wrote on behalf of the Official Committee of Retirees in a document filed with the court last week.

Last week, Rhodes ruled that Detroit, with $18.5 billion in debt, met federal requirements for bankruptcy protection primarily because it was insolvent and negotiations with its creditors were not practical.

The judge also overruled an argument from the groups objecting to the bankruptcy that pensions were protected by Michigan's constitution, ruling that pensions could be cut as part of the city's restructuring.

Proceedings will continue before Rhodes in bankruptcy court even as the appeals process gets underway. Detroit Emergency Manager Kevyn Orr said last week that the city plans to submit its restructuring plan to the bankruptcy court by early January.

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of the Thomson Reuters Foundation. For more information see our Acceptable Use Policy.

comments powered by Disqus
LATEST SLIDESHOW

Latest slideshow

See allSee all
FEATURED JOBS
Featured jobs