Detroit Pension Funds Hire Appeals Lawyers in Advance of Bankruptcy Ruling
Decision expected in next few weeks
Detroit's two employee pension systems have hired lawyers to lead appeals ahead of a federal judge's ruling on whether the city is eligible to proceed with Chapter 9 municipal bankruptcy.
U.S. Bankruptcy Judge Steven Rhodes is weighing whether to permit Detroit to move ahead with the nation's largest municipal bankruptcy, a ruling that could come in the next few weeks.
Rhodes must decide whether the city made the case that it is insolvent, is legally authorized to file for bankruptcy and negotiated in good faith with creditors including bondholders, employees and retirees to avoid bankruptcy.