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..
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.
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