Detroit bankruptcy decision next week

DETROIT – A judge said Monday that he’ll announce next week whether Detroit is eligible to overhaul itself in Bankruptcy Court, the most important decision since the largest public filing in U.S. history in July.

Judge Steven Rhodes said he’ll announce a decision next Tuesday and issue a written opinion later. By disclosing the date, Rhodes eased some of the public’s anxiety about the future of the case.

He presided over a nine-day trial that ended Nov. 8. Unions and pension funds claim Detroit isn’t eligible for bankruptcy because it failed to hold good-faith negotiations before the filing in July. The city, however, insists it did enough during the preceding four weeks.

A decision in favor of eligibility would mean the case would turn to how Detroit can fix $18 billion in debt. Appeals are likely, no matter what Rhodes decides.

 

Advertisement

Continue reading

TOP |

Recent Notifications