DETROIT-U.S. Bankruptcy Court Judge Steven Rhodes said that he will announce a decision on Dec. 3 on whether the city of Detroit is eligible to proceed under bankruptcy protection.
A nine-day trial over the city's eligibility for bankruptcy concluded on Nov. 8 that pitted labor unions and pension funds against the city. The unions and pension funds argued that Detroit was not eligible for bankruptcy protection because it did not engage in good faith negotiations prior to its bankruptcy filing in July. The city on the other hand, claims it did enough the preceding four weeks to be eligible for bankruptcy protection, according to Crain's Detroit.
The city filed for bankruptcy as a means of dealing with $18 billion in debt. Kevyn Orr, the emergency manager for the city of Detroit, has warned of chaos if the city is deemed not eligible for bankruptcy protection. See story in Crain's Detroit Business.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
