Detroit, Michigan – U.S. Bankruptcy Court Judge Steven Rhodes will soon have to make a decision on the City of Detroit’s eligibility to stay in Chapter 9 bankruptcy. He heard from City residents opposing the bankruptcy today.
Reporters at the hearing noted that most objections came in one of two categories. The first opposed the appointment of the Emergency Manager Kevyn Orr who made the decision to file the bankruptcy on the City’s behalf. The second opposed any reduction of pensions payable by the City of Detroit.
At the end of the hearing, the City of Detroit’s lead attorney for the bankruptcy filing, Bruce Bennett, had the floor to respond to the residents’ remarks.
Detroit’s residents and retirees are getting their turn today to voice their opposition to the city’s decision to file for Chapter 9 bankruptcy.
Until now, jousting over Detroit’s ability to seek protection from its creditors and restructure $18 billion in debt has been done almost exclusively by high-paid attorneys representing the city, the state of Michigan and attorneys who represent unions, insurers and bondholders.
One hundred and ten people who submitted objections to Detroit’s bankruptcy filing will be given three minutes each to explain why they believe the city’s bankruptcy case should be rejected by Judge Steven Rhodes.
“I am going to be there,” said Russ Bellant, 65, a Detroit resident and a City of Detroit retiree. “I am one of the folks that challenges the constitutionality of the emergency manager.”
Detroit became the largest city to file for bankruptcy protection in U.S. history July 18 after Detroit Emergency Manager Kevyn Orr received authorization from Michigan Gov. Rick Snyder. Snyder appointed Orr as the emergency manager in March.
Rhodes’ decision to give residents a chance to air their concerns has been praised by legal experts. Throughout Detroit’s historic bankruptcy case, Rhodes has repeatedly said he is aware of the intense public interest in the case.
Many of the people who filed objections to Detroit’s eligibility for bankruptcy argue that the legislation that allowed Snyder to appoint Orr as an emergency manager is unconstitutional and usurps the citizens’ democratic rights.
Detroit Free Press: http://www.freep.com/article/20130919/NEWS01/309190029/detroit-bankruptcy-hearing
