First Bankruptcy Hearing in Detroit Federal Court

By: Shannon Kantner Email
By: Shannon Kantner Email

Attorneys and protesters gathered in Detroit today for the first hearing in federal bankruptcy court.

The proceedings started just after 10:00 a.m. in Judge Steven Rhodes' courtroom. The judge is considering what to do with challenges to Detroit's bankruptcy from retirees who claim their pensions are protected by the Michigan Constitution.

The city wants him to put a stop to lawsuits in other courts, especially after Ingham County Judge Rosemarie Aquilina said state officials ignored the constitution and acted illegally in approving the bankruptcy last week.

The state appeals court temporarily stopped three lawsuits challenging the bankruptcy process on Tuesday.

As lawyers for some of the thousands of creditors arrived Wednesday, they passed protesters holding a banner saying: "Cancel Detroit's debt. The banks owe us."

The judge recessed the court until 2:00 p.m., at which point he is expected to announce his decision about the retirees' lawsuits.

News 10's Shannon Kantner will have reaction from Governor Snyder and the full story on WILX at 6:00.

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