Big decision on Detroit bankruptcy coming Dec. 3

DETROIT (AP) — A judge will announce Dec. 3 whether Detroit is eligible to fix its finances in bankruptcy, the most important decision since the largest public filing in U.S. history in July..

Adam Howard

Nov 25, 2013

DETROIT (AP) — A judge will announce Dec. 3 whether Detroit is eligible to fix its finances in bankruptcy, the most important decision since the largest public filing in U.S. history in July.

Judge Steven Rhodes issued a brief order Monday, saying he’ll rule from the bench on Dec. 3. He said he’ll issue a written decision later.

Lawyers for Detroit and its creditors aren’t required to attend. Appeals are likely.

Rhodes presided over a nine-day trial that ended Nov. 8. Unions and pensions funds claim Detroit isn’t eligible for bankruptcy because it failed to hold good-faith negotiations before the filing. The city says it did enough.

A decision in favor of eligibility would mean the case would turn to how Detroit can fix $18 billion in debt.