6 Things Decided In Bankruptcy Court

Detroit's second bankruptcy hearing was Friday, with Judge Steven Rhodes presiding.

Rhodes determined a number of structural, but important things regarding Detroit's bankruptcy, according to The Detroit News.

• Rhodes says he would like a mediator to resolve as many disputes as possible, which would likely be less contentious than decisions made in court. He also warned against excessive and necessary lawsuits against the city.
   
• A fee examiner will determine if the city's legal fees are appropriate. Heavy public scrutiny of Detroit's legal fees is expected and appropriate, according to Rhodes.
   
• Rhodes approved the creation of a committee to represent retirees who could have their pensions renegotiated if a court approves. The U.S. Trustee, a branch of the Department of Justice, will decide who serves on the committee. The city has offered to pay the fees associated with this committee. Exactly how funded the pensions really are is now under debate, as a Wall Street publication estimates they are funded enough to compete with industry standards, contrary to what Emergency Manger Kevyn Orr said.
   
• City lawyer David Heiman told Rhodes the city will submit its budget plan before the end of the year. "Time is our enemy," he said. The court-imposed deadline is not until March 3.
   
• The October 23 deadline to determine whether Detroit is even allowed to file for bankruptcy still stands, but Rhodes is considering moving it up. Rhodes will have to decide if Emergency Manager Kevyn Orr negotiated with creditors enough before Detroit can officially restructure.
   
• Rhodes would also like everyone to know he's not that special. “It is important to note the very limited role a bankruptcy court and judge play in a municipal bankruptcy case under Chapter 9," he said, as quoted by The News. Rhodes has nothing to do with city services or employees -- he's just here to finagle the trickle legal matters of Chapter 9.