Detroit eligible for bankruptcy

Comment on this story


iol news pic Detroit Bankruptcy~7

AP

Detroit emergency manager Kevyn Orr pauses while speaking at a news conference in Detroit. Detroit is eligible to shed billions in debt in the largest public bankruptcy in US history, a judge said Tuesday in a long-awaited decision that now shifts the case toward how the city will accomplish that task. (AP Photo/Paul Sancya)

Detroit - A judge says Detroit is eligible to fix its finances in bankruptcy court.

The ruling Tuesday clears the way for the city to come up with a plan to shed $18 billion in debt. It comes four months after Detroit sought Chapter 9 protection in the largest public filing in US history.

Detroit must propose a plan to Judge Steven Rhodes, although mediators have been meeting privately with the city and creditors with the hope of striking deals.

Unions and Detroit's public pension funds vigorously opposed bankruptcy during a nine-day trial. They claim emergency manager Kevyn Orr and his team didn't negotiate in good faith before the summer filing, a requirement for a government to be eligible to shed debts under Chapter 9.

Sapa-AP


sign up
 
 

Comment Guidelines



  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

     

Join us on

IOL-Social networks IOL-Social networks IOL-Social networks IOL-Social networks

Business Directory