Trial To Examine If Detroit Eligible In Bankruptcy

By: AP
By: AP

DETROIT (AP) -- The city of Detroit is going to court in an unusual trial that will determine if it really qualifies to scrub its finances in the largest public bankruptcy in U.S. history.

Detroit filed for Chapter 9 protection in July, flattened by at least $18 billion in debt. But nothing can happen until a judge finds the city is eligible to be in bankruptcy court.

Unions and pension funds claim Detroit flunks the test because it failed to hold "good-faith" negotiations with them earlier this year, a key point in bankruptcy law. The city says it's met its burden.

The trial starting Wednesday is expected to last several days with testimony from emergency manager Kevyn Orr and possibly Gov. Rick Snyder, who authorized the bankruptcy filing in July.


WILX.com is happy to provide a forum for commenting and discussion. Please respect and abide by the house rules:

Keep it clean, keep it civil, keep it truthful, stay on topic, be responsible, share your knowledge, and please suggest removal of comments that violate these standards.

See full commenting rules...
powered by Disqus
WILX 500 American Road Lansing, MI 48911 517-393-0110
Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 228890201 - wilx.com/a?a=228890201
Gray Television, Inc.