U.S. Bankruptcy Judge Steven Rhodes has given Detroit 35 days to develop a plan for the hundreds lawsuits pending against the city when it filed for Chapter 9 protection in July.
Detroit News: At an evidentiary hearing Tuesday morning, two city attorneys who work in the law department indicated they had not been advised by Emergency Manager Kevyn Orr’s office or the city’s restructuring consultants as to how the pending litigation would be settled in the bankruptcy proceedings.
Rhodes said the testimony showed that neither the city’s management nor its out-of-state attorneys have “yet spent any time focusing on this very issue on what should the process be for liquidating these claims.”
If the city doesn't provide a plan to dispose of the cases in 35 days, Rhodes promised to lift the automatic stay against all pending lawsuits.
