Detroit Bankruptcy Fight Begins In Federal Court
From the Chicago Tribune
A showdown over the biggest municipal bankruptcy filing in U.S. history begins in a federal court this morning as creditors challenge its legality.
Attorneys for Kevyn Orr, a corporate bankruptcy lawyer tapped by Michigan officials in March as Detroit's emergency manager, want U.S. Bankruptcy Judge Steven Rhodes to put on hold a flurry of lawsuits claiming the Chapter 9 bankruptcy filing violates the state constitution.
Rhodes agreed on Monday to an expedited hearing requested by Orr that seeks to extend Chapter 9's automatic stay of litigation to lawsuits filed against Governor Rick Snyder, Michigan Treasurer Andy Dillon, and Orr by Detroit workers, retirees and pension funds that are pending in state court in Michigan's capital city of Lansing.
Those lawsuits were halted by a Michigan Appeals Court panel on Tuesday in response to State Attorney General Bill Schuette's request to stop proceedings while he seeks to overturn orders issued by a lower court judge hearing the cases. One of those orders directs Orr to withdraw the bankruptcy petition on state constitutional grounds.
The federal court in Detroit is expecting an overflow crowd of media, attorneys, labor union representatives and others participating in or witnessing the unfolding of the historic drama.
Read more in our daily News Update...
From the Chicago Tribune
A showdown over the biggest municipal bankruptcy filing in U.S. history begins in a federal court this morning as creditors challenge its legality.
Attorneys for Kevyn Orr, a corporate bankruptcy lawyer tapped by Michigan officials in March as Detroit's emergency manager, want U.S. Bankruptcy Judge Steven Rhodes to put on hold a flurry of lawsuits claiming the Chapter 9 bankruptcy filing violates the state constitution.
Rhodes agreed on Monday to an expedited hearing requested by Orr that seeks to extend Chapter 9's automatic stay of litigation to lawsuits filed against Governor Rick Snyder, Michigan Treasurer Andy Dillon, and Orr by Detroit workers, retirees and pension funds that are pending in state court in Michigan's capital city of Lansing.
Those lawsuits were halted by a Michigan Appeals Court panel on Tuesday in response to State Attorney General Bill Schuette's request to stop proceedings while he seeks to overturn orders issued by a lower court judge hearing the cases. One of those orders directs Orr to withdraw the bankruptcy petition on state constitutional grounds.
The federal court in Detroit is expecting an overflow crowd of media, attorneys, labor union representatives and others participating in or witnessing the unfolding of the historic drama.
Read more in our daily News Update...