Bankruptcy lawyers for both the City of Detroit and its creditors will have to make quick work as bankruptcy Judge Steven Rhodes has ordered that his ruling regarding Detroit’s eligibility may be immediately appealed.
The Judge has yet to decide on whether or not to recommend a fast track for the U.S. 6th Circuit Court of Appeals.
Bankruptcy lawyers for the city’s creditors will now need to file their appeals and await the responses of Detroit’s bankruptcy lawyers. Due to the length and complexity of the Judge’s opinion, Appellate briefs will likely be very lengthy which means many bankruptcy lawyer hours put in over the next few weeks.
A crucial decision that keeps Detroit in bankruptcy court and puts pensions at risk can immediately be appealed to a higher court, a judge said Monday.
But Judge Steven Rhodes said he still needs a day or two to think about whether he’ll recommend that a federal appeals court put the case on a fast track.
At issue is Rhodes’ Dec. 3 opinion that changed the tone of Detroit’s bankruptcy case. He found the city eligible to remake itself under Chapter 9, saying it was impossible for officials to genuinely negotiate before the July filing. He also declared that pensions aren’t immune to cuts in a final plan, contrary to the Michigan Constitution.
Attorney Lisa Fenning said pension funds aren’t trying to stop the bankruptcy process and will continue to negotiate with the city as it tries to come up with a broad plan to restructure $18 billion in long-term debt.
She said the best “middle ground” for her clients at the appeals court would be a decision that protects pensions but doesn’t kill the overall case.
Sharon Levine, an attorney for the American Federation of State, County and Municipal Employees, said an immediate appeal is important because the union is concerned that Rhodes’ decision could be applied in other states where governments are struggling.
ABC News: http://abcnews.go.com/US/wireStory/appeal-docket-detroit-bankruptcy-case-21230387
