Judge Allows Appeal in Detroit Bankruptcy Case - 13abc.com Toledo (OH) News, Weather and Sports

Judge Allows Appeal in Detroit Bankruptcy Case

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Detroit labor unions and pension funds are back in court appealing a decision to let the city pursue a bankruptcy filing. 

U.S. Bankruptcy Judge Steven Rhodes said he is still mulling over whether or not he'll recommend that a federal appeals court put the case on a fast track.

On December 3rd, Rhodes determined that the City of Detroit met the criteria to file for Chapter 9 bankruptcy, ruling that the city was financially insolvent and that the filing was properly authorized. He dismissed challenges to Michigan's emergency manager law and ruled that pensions are not protected by the state constitution.

The retirees, pension funds and AFSCME are racing against the city, which plans to file a plan to cut more than $18 billion in debt. That plan is expected to slash pensions for retired city workers.