And so it begins. Federal Judge Steven Rhodes this morning presides over the first hearing in Detroit's bankruptcy case.
Robert Snell and Chad Livengood of The Detroit News have a preview of what's ahead in a first-floor courtroom.
One of the first issues Rhodes will address is whether the bankruptcy filing automatically freezes litigation against Emergency Manager Kevyn Orr and his team, including a retiree lawsuit over proposed pension cuts.
Rhodes could halt the pension lawsuit, which would remove an early obstacle to the city restructuring about $18.5 billion in debts in bankruptcy court. . . .
Orr’s legal team wants Rhodes to stay three state court lawsuits filed by retirees, current city workers and Detroit’s pension funds. At issue in the initial legal proceedings is whether $3.5 billion in unfunded pension liabilities can be slashed as part of an effort to pare down the city’s debt. . . .
Legal experts said Rhodes could put an end to state-level legal skirmishes by taking jurisdiction over the lawsuits.
Because of high interest in the 10 a.m. hearing and others to follow, closed-circuit video and audio feeds that will broadcast it into adjacent courtrooms and let lawyers listen in from around the world, as The News describes.
