Bankrupt Cities

US Bankruptcy Judge To Decide Detroit Pensions

Not the state court

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The contentious dispute between the City of Detroit and the city's pension funds will be decided by U.S. Bankruptcy Judge Steven Rhodes in a federal courtroom and not in state court in Ingham County, Rhodes has declared.

In an order filed Monday, Rhodes said he will hold a hearing at 10 a.m. Wednesday to consider the city's request to put all lawsuits filed before the city filed for bankruptcy on hold.

The decision by Rhodes means that the first hearing of Detroit's bankruptcy case could prove to be a crucial moment in the city's effort to restructure under court protection.